Question 8. Consider an economy in which there are 200 workers. 3/ 4 of the workers are endowed with 100 units of the consumption good when young and nothing when old. The remaining workers are endowed with 20 units of the good when young and nothing when old. Each worker saves 50% of their endowment when young. Let the gross rate of return on capital be 1.25. There are 50 entrepreneurs in the economy. Each entrepreneur is endowed with 50 units of the consumption when young and nothing when old. Entrepreneurs only want to consume when they are old. Let the stock of money be constant over time. Assume that each worker uses 20 goods to identify herself and make a withdrawal from the bank. At date 73, there is a permanent increase in the return on capital to 1.3 1. Compute GDP in period t and t + 1 2. Compute aggregate deposits in t and t + 1 3. What is the sign of the correlation, if any, between aggregate deposits and GDP over the 2 periods