Question: Let us consider the complete intertemporal monetary model. Suppose now the government encourages the use of credit card so that given q, the credit issuance

Let us consider the complete intertemporal monetary model. Suppose now the government encourages the use of credit card so that given q, the credit issuance X goes up. Use the diagram to analyze the effect on money in the market M, Price P, real interest rate r, total output y, wage w, and labor N. Calculate.

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