Question 4- Consider an overlapping generations model with the following characteristics: The initial old, generation N0 is composed of 1000 individuals and the population is growing at the rate of n = 1.2

Question 4- Consider an overlapping generations model with the following characteristics: The initial old, generation No is composed of 1000 individuals and the population is growing at the rate of n = 1.2. The at money supply changes according to M: = 2M\". The initial old own a total of 5000 units of at money (M0 = 5000). Each period, the newly printed money is given to the old of that period as a lump-sum transfer (subsidy). Each person is endowed with 30 units of the consumption good when born and nothing when old. Preferences are such that individuals wish to save 10 units when young at the equilibrium rate of return on at money. a. Determine V; and V2 and the gross real rate of return on at money in this equilibrium. b. How many goods does an individual receive as a subsidy