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3. LO 4 Suppose that the nominal interest rate is zero, that is, R = 0. a. What is the equilibrium quantity of credit card

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3. 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 effi- ciently with R = 0 than with R > 0? c. Explain your results in parts (a) and (b). Discuss the realism of these predictions

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