4. Suppose that an epidemic of street crime sweeps the country, making it more likely that your...

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4. Suppose that an epidemic of street crime sweeps the country, making it more likely that your wallet will be stolen. Using the Baumol–Tobin model, explain (in words, not equations) how this crime wave will affect the optimal frequency of trips to the bank and the demand for money.

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Macroeconomics

ISBN: 9781429218870

7th Edition

Authors: N. Gregory Mankiw

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