a. Supposed you have savings in your bank account earning 5% interest per year. You are…

a. Supposed you have savings in your bank account earning 5% interest per year. You are thinking about buying a stock with an expected price of AED 150 in one year and with an expected earning per share of AED 10 in one year. If you offer to pay maximum AED 150 for that share of stock today, other things equal, will you be at least earning your opportunity cost? Enter your calculations and explain your result in no more than 3 sentences. True, False, Why? b. The Neo-Keynesian Macro-Model argues that monetary policy is effective in influencing production (output), and employment in the short-run. Justify your answer in no more than 3 sentences.