3. Consider and infinite-horizon economy in discrete time, where the utility of the representative household is given by 00 {$* (Inc, +r t=0 1- mt U = 1 - where 0 0. The household faces the following budget constraint 1 + it-1 1 Ct + bt + kt +mt = f(kt-1) + (1 - 0)kt-1 + + -mt-1+tt where bt denote real bonds, kt denotes capital, mt are real money balances at the end of period t, nt is the inflation rate and Tt are real government transfers. The function f satisfies fk > 0 and fkk 0. The household faces the following budget constraint 1 + it-1 1 Ct + bt + kt +mt = f(kt-1) + (1 - 0)kt-1 + + -mt-1+tt where bt denote real bonds, kt denotes capital, mt are real money balances at the end of period t, nt is the inflation rate and Tt are real government transfers. The function f satisfies fk > 0 and fkk