Consider a three-period OLG model. There are Nt people born in time t and gross rate of population growth is n.

c3,t+1 by holding capital

d) Discuss the substitutability of fiat money and capital

e) Suppose Mt = zMt1 where z > 1. Find the rate of return on money in this case. Find an assumption that you need to impose so that an individual will choose to provide for c3,t+1 by holding capital