Suppose the intermediation or capital goods costs pho units

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Suppose the intermediation or capital goods costs pho units of the consumption good for each unit of capital intermediated (< X^0-5). Assume that transaction costs occur when agents withdraw from banks (when they are middle-aged). What will the equilibrium rate of return offered by intermediaries be if they are the ones who bear the transaction costs? For what value of, x. z, and n will iial money be valued in this cconomy?

Reference no: EM131098895

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