Consider again the model economy described in Exercise 3.2, but suppose there is a second storable good, silver. Silver is as easy to exchange and store as gold. The initial old own a total of 50 units of silver. There can be no additions to the stock of silver. People are indifferent between consuming 1 unit of silver and 1 unit of the consumption good. Let v^s_t denote the trading value of a unit of silver. 

a. Find the market-clearing condition if both silver and gold are used as money. Can there be an equilibrium in which both silver and gold are used only as money (are not consumed) and v^s_t = 1.5?_... v_^st = 2? In each case, use the market-clearing condition to find the corresponding trading value of gold. For what range of values of v^s_t is there an equilibrium in which both silver and gold are used only as money (are not consumed)?
b. What would happen to the value of silver if the government passed a law banning the use of gold as money?
c. If one member of the initial old owned the entire stock of silver, would that person prefer that gold alone, silver alone, or both gold and silver be used as money? Explain.
d. If each member of the initial old owned 1/2 unit of silver and 2 units of gold, would the initial old prefer that gold alone, silver alone, or both gold and silver be used as money? Explain.