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Please help me to solve these questions! I was out sick and was not in lecture and now I have no idea how to work
Please help me to solve these questions! I was out sick and was not in lecture and now I have no idea how to work this problem! I would appreciate it so much if anyone could help me out with this and I will give you a top rating as well to whomever can assist me! Thank you!!
All households in country Nocapital have the same life-time utility given below (/07 + awe2. 60% of households have $45,000 in the rst period and $0 the second period (Type A). 40% of households have $0 in the rst period and $50,000 the second period (Type B). (a) (4 points) Given real interest rate 'r, derive type A household's saving function. (b) (4 points) Derive type B household's saving function. (c) (4 points) As alluded earlier, there is no other demand for funds besides borrow- ing among households themselves. The net saving from all household should be zero at the equilibrium. What is the equilibrium real interest rateStep by Step Solution
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