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Question: The previous question assumes that the correlation between the coin flips in 0. Repeat this question with the following correlations:
a. If the first coin flip is heads, then the second coin flip will be heads as well, and vice versa (correlation of 1).
b. If the first coin flip is heads, then second coin flip will be tails, and vice versa (correlation of -1).
c. If the first coin flip is heads, then the second coin flip will be heads with a probability of 0.8. If the first coin flip is tails, then the second coin flip will be tails with a probability of 0.6.
d. What can you conclude about the connection between the variance of the return from the coin flips and the correlation between the flips?
Effects of a deficit and surplus balance of payments on the employment? increase or decrease? and why?
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