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Q. Suppose people in our overlapping generation's model have the opportunity either to hold at money with complete safety or to lend to someone who may never repay the loan. The chance of such a default is 10 percent. Assume a stationary monetary equilibrium in which the population grows at a net rate of 8 percent and the at money stock fixed. What real interest rate will be charged to the borrower if people are risk neutral? What can you say about the level of the real interest rate if people instead are risk averse?
Suppose you work in a financial institution, how you would advise your clients.
The water is identical in the two sizes and John gets no utility from the containers themselves, only from the water.
Make sure to make available examples of real world to strengthen your position of wherever this might be case
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In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
Explain the steps that would be used to conduct a Benefit-Cost Analysis of a government policy to alleviate the problem.
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