Consider a two-period, general equilibrium, endowment economy with no government and fixed labor supply (just like the one we studied in class). There is a representative household that consumes and holds real money balances. The household's preferences are given by the following utility function: U = c1 t 1 + ( Mt pt ) + c1 t+1 1 The household's budget constraints at periods t and t+1 are: ptct + ptst + Mt ptwt pt+1ct+1 pt+1wt+1 + (1 + it)ptst + M