1. Consider the search-theoretic model of money from Kiyotaki and Wright (1993) in the version that has been discussed in the course. It was shown in the lecture that and where Ve A{1-3[1 MTII(II X) 7XII]} = Vm = VII{1 - B[1 MTA(II X) TX]}, (1 - M)TXU (1 B)[1 B(1 TXII)] - > 0. Compare the difference Ve - Vm for the three stationary equilibria and give an economic inter- pretation of your results.