{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

midterm_09_3430A - Monetary Economics I Financial Markets...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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 . (a) Determine the resource (feasibility) constraint for this economy.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern