Are the rates of return constant in the two countries

Reference no: EM131144851

Rates of return in the leader-follower model

Consider again the leader-follower model from sections 8.1 and 8.2. a. Are the rates of return constant in the two countries? Which rate of return is higher? b. What happens if the leader and follower countries share a common, perfect credit market?

Reference no: EM131144851

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