True, False or Uncertain. Briefly explain your answer

Section A: Question 1-4, answer True, False or Uncertain. Briefly explain
your answer. (each question is worth 1.5 marks)
1. The lack of double coincidence of wants precludes people from using credit for transactions.
2. When the population is growing, fixing the price level is the optimal policy.
3. To finance the same amount of government purchases, using a lump-sum tax is better
than using the inflation tax (money creation).
4. In the Lucas price surprise model where monetary policy is nonrandom, the young
can always infer which island they live on no matter how the young population is distributed
between the two islands.
Section B: Answer all 4 questions. Each question is worth 6 marks.
5. (6 marks) Consider the standard OLG model with money and growing population.
Individuals are endowed with y units of a perishable consumption good when young and
nothing when old. Individuals want to consume both when young and when old. Let
Nt = nNt-1 and Mt = zMt-1 for every period t, where Nt are the number of people born
in period t and Mt is the money stock in period t. Consider the case in which z and n are
both greater than 1. The money created each period is distributed as a lump-sum transfer
to each old individual worth at units of consumption goods. Each generation has identical
preferences where

The post True, False or Uncertain. Briefly explain your answer appeared first on My Assignment Online.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose HelpHub


Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.


Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.


Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.


On Time Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.


Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.


24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Help Hub

Place your order

Fill in the order form and provide all details of your assignment.

Help Hub

Proceed with the payment

Choose the payment system that suits you most.

Help Hub

Receive the final file

Once your paper is ready, we will email it to you.

HelpHub Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HelpHub HelpHub


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HelpHub HelpHub


Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HelpHub HelpHub


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HelpHub HelpHub


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.