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Question 11. Consider an economy in which there is a morning period and an afternoon period. There are 100 debtors and 100 creditors born each
Question 11. Consider an economy in which there is a morning period and an afternoon period. There are 100 debtors and 100 creditors born each period. When old, one of the debtors arrives in the morning. Before the afternoon starts, 75 percent of the creditors must leave. Each creditor loans 100 units of the consumption good to debtors when young. There is a xed amount of at money equal to 20, 000 1. How much money did the morningarriving debtors bring to the island? 2. At What price would the IOUS held by morningleaving creditos sell? 3. How much did the morningleaving creditors consume? How much did the afternoon leaving creditors consume
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