Question: 2) Another question that has been tackled with the DSG methodology is the origin of money demand. Consider the following model of a representative agent

2) Another question that has been tackled with the DSG methodology is the origin of money demand. Consider the following model of a "representative agent economy" where money holdings are assumed to reduce the "time costs of transactions". 1=00 Ulifetime = B*{log(ct) + clog(1 - 4 - 2)} 00 (1) 1= 0 (2) Mt Pict

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