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Q. 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%).  re is a 30% chance of getting a high risk borrower and a 70% chance of getting a low risk one.   Illustrate what is expected interest rate that will be charged by a bank that cannot exactly distinguish between two types but knows probabilities of each type.   In this market for loans illustrates what would be result?
Original owners must sell their used cars. Original owners know what their cars are worth, but buyers can't determine a cars quality until they buy it.
The United States simultaneously limits imports of ethanol for fuel purposes also provides incentives for the utilize of ethanol in gasoline which raise the price of ethanol by about 15 percent.
Illustrate what is the profit maximizing price of carpets. Illustrate what is the profit maximizing price of carpets.
Consider a finite set of prizes X and probabilities P on them. Suppose that an expected utility maximizer's preferences > on P have an expected utility show with utility function on prizes u : X->R.
Using the travel cost method, evalute the annual active use value of this area to the people living in these cities.
Illustrate what techniques for changing organizational culture has Google used to form its culture.
Select the most serious disadvantage of globalization (in your opinion) and make at least one recommendation
If you were to learn that gatorade introduced new favors in 2010, how should that information affect your calculation to the inflation rate.
You have been asked to produce a forecast for your company's new product (bottled water). List out and briefly describe four factors you would consider before giving the forecast.
If the government faces an AD Shortfall of 100 billion dollars and finds that the marginal propensity to consume is 0.8, elucidate what will be the desired fiscal stimulus.
Explicidate that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale as long as there is some point that yields a positive profit.
Illustrate what is the effect of the price increase on revenue at the YSU campus store. Calculate the price elasticity of demand for Bottom Feeder Tacos using the mid-point formula.
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