Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > HR Management Posted 11 Nov 2017 My Price 4.00

Smith and Jones

Return to Problem 10.5 and now assume that Smith and Jones conduct their exchanges in paper money. The total supply of such money is $60 and each individual wishes to hold a stock of money equal to = of the value of transactions made per period. a. What will the money wage rate be in this model? What will the nominal prices of X and Y be?

b. Suppose the money supply increases to $90, how will your answers to part a change? Does this economy exhibit the classical dichotomy between its real and monetary sectors?

 

Answers

(5)
Status NEW Posted 11 Nov 2017 06:11 PM My Price 4.00

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