Consider an OLG model in which N0 = 100, and the gross population growth rate is equal to n. Each individual only receives y = 100 coconuts when he is young, and nothing when old. The monetary authority introduces either M = 1000 or M = 2000 units of gold in the first period, and distribute them equally among the old generation in that period. Gold can be used either as the medium of exchange or consumed like a regular commodity, and it yields a utility equal to 5 units of the endowment (~v = 5). Finally, suppose the individual preference is such that everybody wants to save, in real terms, y 1+ vt vt+1 . a. (4pts) Suppose gold can only be used as money, what is the value of v g t for n = 1, M = 1000 or 2000, and t = 1 or 2. b. (3pts) What is the rate of inflation pt+1 pt in each case, and what is the current (c1) and future (c2) consumption, respectively? c. (3pts) Which case is not stable and why? What is going to happen then? After the new equilibrium is restored, what is the amount of monetary gold and non-monetary gold, respectively?

Which feature transfers a slide show into a word-processing document?

10. which of the following is true regarding preretirement inflation? a. defined-benefit plans provide more inflation protection than defined-contribution plans. b. because of preretirement inflation, possible investment-related growth is increased for defined-contribution plans. c. all types of benefits are designed to cope with preretirement inflation. d. preretirement inflation is generally reflected in the increase in an employee's compensation level over a working career.

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."