LO 4 Suppose that the nominal interest rate is zero; that is, R = 0. (a) What

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LO 4 Suppose that the nominal interest rate is zero; that is, R = 0.

(a) What is the equilibrium quantity of credit card balances?

(b) In what sense does the economy run more eiciently with R = 0 than with R 7 0?

(d) Explain your results in parts

(a) and (b).

Discuss the realism of these predictions.

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Macroeconomics

ISBN: 9781292215792

6th Global Edition

Authors: Stephen Williamson

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Question Posted: Oct 14, 2024 10:00 AM

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LO 4 Suppose that the nominal interest rate is zero; that is, R = 0. (a) What

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Macroeconomics

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