Find the maximum level of seignorage that can be financed


Suppose that: n > 1 (there is population growth) and mu > 1 (there is growth in the money supply). What is the necessary and sufficient condition (if any) for the rich to save in capital? Solve the previous exercise with the new assumptions Find the maximum level of seignorage that can be financed under the assumption that x > n/mu. Find the maximum level of seignorage that can be financed under the assumption that x < n/mu.

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Business Economics: Find the maximum level of seignorage that can be financed
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