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Interest rate and probability
Suppose a bank is faced with two types of borrowers (a high risk borrower that should be charged an interest rate of 9% and a low risk borrower that should be charged an interest rate of 4%). There is a 30% chance of getting a high risk borrower and a 70% chance of getting a low risk one. What is the expected interest rate that will be charged by a bank that cannot exactly distinguish between the two types but knows the probabilities of each type. In this market for loans what would be the result?
Explain how would you interpret the slope coefficient also illustrate what is the rate for the period under study.
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
Elucidate the fiscal policy also which factors limit its effect.
Discuss the difference among inflationary gap also deflationary gap.
Describe the dimensions of quality from micro- and macro-perspectives. What are the different formats or models and applications of quality? Discuss the top three in your opinion.
Assume that Congress is considering imposing the 30% tariff on imported automobiles. Who would be the gainers and who would be the losers from such move?
You are told to produce a quantity that maximizes profit. How many units do you produce and what is your profit? How many machine and labour hours are used in production?
Illustrate elastic or inelastic. Make confirm you continue to use the correct terms when considering changes in price
Find out more about the airline industry. What is the price elasticity of supply for the airline industry.
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
Explain how might a high school student's experience with inflation differ from an employed urban adult.
Price comparison services on the Internet (as well as shopbots) are a popular way for retailers to advertise their products and a convenient way for consumers to simultaneously obtain price quotes from several firms selling an identical product.
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