r=0% on deposits. Consumer needs to borrow $50 loan and the consumer has uncertain income of y=50,80,100 each with 1/3 chance. There may be multiple equilibrium R's. What is the R that's other than 0 or infinity? R=_ %.
r=0% on deposits. Consumer needs to borrow $50 loan and the consumer has uncertain income of y=50,80,100 each with 1/3 chance. There may be multiple equilibrium R's. What is the R that's other than 0 or infinity? R=_ %.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter16: Information, Risk, And Insurance
Section: Chapter Questions
Problem 8RQ: What are some ways that someone looking for a loan might reassure a bank that is faced with...
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![r=0% on deposits.
Consumer needs to borrow $50 loan and
the consumer has uncertain income of
y=50,80,100 each with 1/3 chance.
There may be multiple equilibrium R's.
What is the R that's other than 0 or infinity?
R=____%.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1814b556-6eb2-4b0f-af0f-2bd73628ccac%2Fffb13356-f244-493c-af70-4d2cdc1744a3%2Fkom3por_processed.jpeg&w=3840&q=75)
Transcribed Image Text:r=0% on deposits.
Consumer needs to borrow $50 loan and
the consumer has uncertain income of
y=50,80,100 each with 1/3 chance.
There may be multiple equilibrium R's.
What is the R that's other than 0 or infinity?
R=____%.
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