Test1 formula sheet

Test1 formula sheet - t ÷ v t+1 )*a t Money Market: Real...

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Skelton Eco 3355 Test 1 Formula Sheet Feasible Set: N t *c 1,t + N t-1 *c 2,t = N t *y Budget Constraints: Period one: c 1 + v t *M t = y Period two: c 2 = v t+1 *M t + a t Intertemporal: c 1 + (v t ÷ v t+1 )*c 2 = y + (v
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Unformatted text preview: t ÷ v t+1 )*a t Money Market: Real money supply: v t *M t Real money demand: N t *(y-c 1 ) In money market equilibrium: v t = [N t *(y-c 1 )] ÷ M t...
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This note was uploaded on 04/18/2008 for the course ECON 3355 taught by Professor Skelton during the Spring '06 term at SMU.

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