What is the market clearing condition for the world bond market? Explain. Define an equilibrium for the world economy. Make sure to include the goods and bond market clearing condition

2 [70 points] Two Country Model There are two countries in the world labeled h and I. Consumers in each country have preferences for current and future consumption given by: 1/h (CHICK) - Incy + Bunch u1 (coc;) - Inc, + B, Inc Consumers in country h are very patient and have a high discount factor S, con- sumers in country I are impatient and have a low discount factor B (B,