Consider the economy with monetary expansion studied in class. Assume that

u(c1, c2) = ln(c1) + c2,

N = 200,

y = 3.

a. Suppose there is no seigniorage. For = 1.2, find the real value of the transfer a in the stationary case.

b. Consider the case of seigniorage. Find function g() discussed in class.

c. Plot the function g() obtained in part b.

Problem 1 Consider the economy with monetary expansion studied in class. Assume that u(C1, C2) = ln(c1) + 02, N = 200, y = 3. a. Suppose there is no seigniorage. For u = 1.2, find the real value of the transfer a in the stationary case. b. Consider the case of seigniorage. Find function g(n) discussed in class. c. Plot the function g(h) obtained in part b. Problem 1 Consider the economy with monetary expansion studied in class. Assume that u(C1, C2) = ln(c1) + 02, N = 200, y = 3. a. Suppose there is no seigniorage. For u = 1.2, find the real value of the transfer a in the stationary case. b. Consider the case of seigniorage. Find function g(n) discussed in class. c. Plot the function g(h) obtained in part b