Question: Using the discrete-time dynamical system and the derivation of Equation 1.10.7, find pt, mt+1, bt+1 and pt+1 in the following situations. s = 1.8, r

Using the discrete-time dynamical system and the derivation of Equation 1.10.7, find pt, mt+1, bt+1 and pt+1 in the following situations.
s = 1.8, r = 1.8, mt = 1.2 × 105, bt = 3.5 × 106.

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