This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Monetary Economics I: Financial Markets and Institutions ECON 3430 A Midterm Test October 21, 2009 Professor Ahmet Akyol Start: 11:30am. Finish: 12:45pm. Note that, after the test, I will not lecture today. Show all your work. Good Luck! Questions 1. 10 points Show that two indifference curves cannot intersect. 2. 20 points Here is the statement: Even though the existence of fiat money improves the utility of individuals relative to the autarky case, the amount of fiat money does not matter. Explain clearly what this means. 3. 60 points Consider an economy with overlapping generations. Time is discrete, and denoted by t = 1 , 2 , ... . N t young individuals are born in period t . Each individual endowed with y 1 units of perishable consumption goods when young and y 2 units of perishable consumption goods when old. Assume that population follows the process: N t +1 = nN t for all t ....
View Full Document
This note was uploaded on 04/17/2010 for the course LAPS ECON2450 taught by Professor Tasso during the Spring '10 term at York University.
- Spring '10