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111111111111111111111111111111111 In the monetary intertemporal model, show that it is possible to have an equilibrium in which money is not held and only credit cards
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In the monetary intertemporal model, show that it is possible to have an equilibrium in which money is not held and only credit cards are used in transactions. x (q) The figure to the right shows the supply curve for credit card services X" (q). In terms of the nominal interest rate R, real income Y, and the price level P, point A is an equilibrium in which money is not held and only credit cards are used in 91... .A transactions if and only if X1 and 91 q = Price of Credit Card Services (0, 0) X1 X = Real Quantity of Credit Card ServicesStep by Step Solution
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