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EC125 (CDA) Assignment 1 Moses Tan (STU:1400320)
1. Reproduce the following equations (without the watermark) using MathType:
a) 3
1 1 2 1 1
1
1 if in quarter j, where
0 otherwiset t t j jt t jt
j
y x x Q Q
.
b)
1 if individual is <16 years old
2 if individual is 17-25 years old
3 if individual is 26-40 years old
8 if individual is >75 years old
ix
c)
,1 ,1
,2 ,2
, ,
ˆ ˆ 0 0
ˆ ˆ0 0ˆ
ˆ ˆ0 0
i j
i j
ijT T
i T j T
u u
u u
u u
d)
ln
1 ln
p r pd u y
d y p r p y b
e)
, ( , ) , y
, ( , )
x y x y x y
x y y x x y
p yp x
E X Y x y p x y xp x y yp x
x p x y y p x y xp x yp y E X E Y
f) 1
1 2, ,x
1
max , , , s.t. ; 0 1,2, ,n
n
n i ix
i
U x x x p x M x i n
EC125 (CDA) Assignment 1 Moses Tan (STU:1400320)
MR
y
π PC’
PC
PC’’
y
π
PC’ PC
PC’
’
MR
Figure 1 – The Role of Central Banks – Monetary Rule.
2. Reproduce the following equations (without the watermark) using Microsoft Word:
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