In an OLG model with money: Each gen picks 12 banans when young, 0 bananas when old. Central bank prints out 2 units of money, given to gen 0 for free. maxCyCo Cy= 4-vm Co= 0 + vm In equilibrium, 1 money = ______ bananas.

In an OLG model with money: Each gen picks 12 banans when young, 0 bananas when old. Central bank prints out 2 units of money, given to gen 0 for free. maxCyCo Cy= 4-vm Co= 0 + vm In equilibrium, 1 money = ______ bananas.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 3P

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Question

In an OLG model with money:

Each gen picks 12 banans when young, 0 bananas when old.

Central bank prints out 2 units of money, given to gen 0 for free.

maxCyCo

Cy= 4-vm

Co= 0 + vm

In equilibrium, 1 money = ______ bananas.

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