Question: Part A: Interest Rates, General Equilibrium, Comparative Statics (50 points) This section builds on the general equilibrium model discussed in class. The purpose of this

Part A: Interest Rates, General Equilibrium, Comparative Statics (50 points) This section builds on the general equilibrium model discussed in class. The purpose of this assignment is to examine the comparative statics of the model to determine what happens to prices and interest rates as we change assumptions. It is again recommended that you solve these problems in Excel so you can apply the formulas repeatedly and to avoid tmncating intermediate calculations. Our last assignment analyzed the following economy (two goods, two periods, two representative consumers with endowments). - Xavier has Cobb-Douglas preferences over consumption today (A 1 for apples today) and tomon'ow (A2) of the form U>

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