有關barro書中的練習題 - 經濟

學校總經是用barro這本書

下禮拜要考試了有些題目想跟大家討論一下~

是原文題請大家耐心看完,謝謝!

About transaction frequency and the demand for money

Suppose that a household's consumption expenditure is $60,000 per year

and is financed by monthly withdrawals from a savings account.

a. Show on a graph the pattern of the household's money holding over a year.

What is the average money balance? Should we identify this average

balance with the quantity of money demanded in our model?

b. Suppose now that the frequency of withdrawals from the savings account

rises to two per month. What happens to the average money balance?

c. Return to question a., but assume now that consumption expenditure is

$120,000 per year. If withdrawls from the savings account are still

made monthly, what is the average money balance? How does this average

compare to the one in question a.? Is it optimal for the frequency of

withdrawls to remain the same when consumption expenditure increases?

Explain.

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