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=
%.

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