Consider an OLG economy, young picks 3 bananas, old picks 1 banana. At time 1, central bank prints out 1 unit of money, given to
Consider an OLG economy, young picks 3 bananas, old picks 1 banana. At time 1, central bank prints out 1 unit of money, given to gen 0 for free. At all periods afterwards, central bank doubles the total supply of money each period. In equilibrium, how much money is demanded by gen 1? In other words, m=_ O 1/v O 2/v O 1/(2v) O 1/(3v)
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