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Thanks 2. (10pts) The Andolfatto model (a) (2pts) What role does heterogeneous income play in the Andolfatto model? How does this relate to the tradeoff
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2. (10pts) The Andolfatto model (a) (2pts) What role does heterogeneous income play in the Andolfatto model? How does this relate to the tradeoff between opening a bank account or not? (b) (2pts) Describe the optimal pricing strategy of the bank in the absence of CBDC. (c) (3pts) Consider the introduction of CBDC. Explain the optimal strategy of the monopolist in the following cases: 1. R$Step by Step Solution
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