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Unformatted text preview: b. Intertemporal – coordination across time i. Prices in the “time market” tell entrepreneurs how valuable time is. ii. “Time market” = market for loanable funds 1. This is where present and future value are exchanged “directly”, in some sense. III. Expectations a. Expectations play in all along the way. i. Expected prices ii. Expected demand iii. Expected technology b. Errors occur i. Often unsystematic seemingly random. ii. Occasionally, systematic. Occurs is people have been misled in some way....
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- Fall '08
- Free Market, Planned economy, economic planning, Family Farm and Economic Planning