Describe the essential features of a model economy in a monetary
market of rational people for which each of the following
statements is true: (These features might include the pattern of
population growth, monetary growth, endowments, and government
policies. Note that there may be more than one moedel that yields
the given results.)
a. The gross rate of return on fiat money is 1. The monetary
equilibrium also maximizes the utility of the future
generations.
b. The price level doubles...