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EC 217 MS 2022 homework 1 1
EC 217 MS 2022 homework 1
1. Set up the optimization problem in terms of the Bellman equation, derive the first order conditions, Euler equations and the Fisher relation for the Money in the Utility function model.
2. Set up the optimization problem in terms of the Bellman equation, derive the first order conditions, Euler equations and the Fisher relation for the Cash in Advance model.
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