Question
Three provinces congregated together and established an authority responsible of injecting money into the financial system. The financial experts determined that idea $6 billion
Three provinces congregated together and established an authority responsible of injecting money into the financial system. The financial experts determined that idea $6 billion dollars have to be in circulation in each federated province. Each month, of all the money at province 1 leaves circulation, 1/3 stays at province 1, and 1/3 gets province 3. Each month, 1/3 of the money stays at province 2, 1/3 of the money go to province 1 and the remaining money ends-up in province 3. Each month, 1/3 of t money stays at province 3 and the remaining money goes to province 2. The financi authority introduces money into the system at province 1. (a) Applying the concept of steady-state census, is there a way to have a steady- state level of $6 billion in circulation at each province? [Hint. First, solve for N, then find H]
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