=+b. Now suppose that the lending institution knows that the government will bail out UNIVERSAL if there

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=+b. Now suppose that the lending institution knows that the government will “bail out” UNIVERSAL if there is a default (paying back the original $1000).

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Microeconomics

ISBN: 9781292081977

8th Global Edition

Authors: Robert S. Pindyck, Daniel L. Rubinfeld

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