Show that, if U(c) = ln c,then there is no need for a bank in the Diamond

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Show that, if U(c) = ln c,then there is no need for a bank in the Diamond – Dybvig economy, and explain this result.

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Macroeconomics

ISBN: 978-0134472119

6th Edition

Authors: Stephen D. Williamson

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Question Posted: Feb 21, 2020 12:07 PM

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Show that, if U(c) = ln c,then there is no need for a bank in the Diamond

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Diamond and Dybvigs paper points out that business investment often requires expenditures in the pre...View the full answer

Macroeconomics

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