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a) Are equations (1) and (2) dynamie'? b) Discuss the economic sense of the assumed signs for the function arguments in equations (3) and (4)

a) Are equations (1) and (2) dynamie'? b) Discuss the economic sense of the assumed signs for the function arguments in equations (3) and (4) c) It this model were based on proper "miero foundations" how, in principle, would equations (3) and (4) have been obtained?

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