Suppose that in the demand side the person's utility function is the supply side be unchanged....

 

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Suppose that in the demand side the person's utility function is the supply side be unchanged. U(c, ) In c + lnc, where 0 < <1. Let What is the equilibrium price for the real bonds? How does affect this price? Suppose that in the demand side the person's utility function is the supply side be unchanged. U(c, ) In c + lnc, where 0 < <1. Let What is the equilibrium price for the real bonds? How does affect this price?

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To determine the equilibrium price for real bonds and understand how affects this price we need to analyze the utility function and its implications f... View the full answer