1. Consider an OLG economy where each generation has 20 bananas when young, and 0 bananas when old. Suppose central bank prints out 2 unit of money, give to gen

1. Consider an OLG economy where each generation has 20 bananas when young, and 0 bananas when old. Suppose central bank prints out 2 unit of money, give to gen 0 for free. Solve for equilibrium exchange rate “1 money = ??? bananas”. 2. Under the equilibrium exchange rate you solved in the previous question, what is cy for each generation with money? 3. Under the equilibrium exchange rate you solved in the previous question, what is co for each generation with money? 4. Under the equilibrium exchange rate you solved in the previous question, what is the lifetime happiness for each generation with money?

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