Consider an overlapping-generations economy with two-period-lived agents. In each genera- tion, there are three different types of agents: workers, entrepreneurs, and bankers. Workers differ in their endowments you when young, but all have zero endowments when old. There are two types of workers with the following endowments: Type A: y = 10 Type B: y = 90 There are N = 900 workers of type A in every period and NB 100 workers of type B. Preferences are such that all workers want to consume half of their endowments when young. Workers can save either by holding currency or by depositing their funds with a private bank. When workers withdraw their deposits from the bank, they have to pay a fixed cost o = 3 units of the consumption good. Competitive banks use the funds obtained through deposits to give out loans to entrepreneurs, who pay a gross interest rate of x = 1.2 on the loans, where x is equal to the real rate of return to capital. The fiat money stock amounts to M = 1,000 units of fiat money and is constant (z = 1). For each type of worker, calculate the average rate of return on deposits and determine whether they save by holding currency or deposits. Consider an overlapping-generations economy with two-period-lived agents. In each genera- tion, there are three different types of agents: workers, entrepreneurs, and bankers. Workers differ in their endowments you when young, but all have zero endowments when old. There are two types of workers with the following endowments: Type A: y = 10 Type B: y = 90 There are N = 900 workers of type A in every period and NB 100 workers of type B. Preferences are such that all workers want to consume half of their endowments when young. Workers can save either by holding currency or by depositing their funds with a private bank. When workers withdraw their deposits from the bank, they have to pay a fixed cost o = 3 units of the consumption good. Competitive banks use the funds obtained through deposits to give out loans to entrepreneurs, who pay a gross interest rate of x = 1.2 on the loans, where x is equal to the real rate of return to capital. The fiat money stock amounts to M = 1,000 units of fiat money and is constant (z = 1). For each type of worker, calculate the average rate of return on deposits and determine whether they save by holding currency or deposits