there are 4 parts to this question

If money supply growth is z = 0.4 and n = 0.8, by reducing young age consumption by one unit and buying money with that unit, a consumer can increase old age consumption by 2 units. Yes or No? Explain why Answer:. Suppose y = 100 and at the golden rule allocation we have COR = 20. If n = 0.5, what is co GRO Answer:. Suppose the rate of return on money is twice as high as the population growth rate. Then the monetary equilibrium attains the golden rule allocation. Yes or No? Explain why. Answer:Question 1: (25 points) For the following 5 short answer questions, note that the gross rate of return for money is given by Ut+ where n is population growth rate and z is the money supply growth rate. The rate of inflation is given by Ut Ut+1 n The social planner's budget constraint is given by C1 + -C2