=+c. Suppose that the lending institution doesnt know for sure that there will be a bail out,

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=+c. Suppose that the lending institution doesn’t know for sure that there will be a bail out, but one will occur with probability P. For what values of P will the lending institution make risky loans?

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Microeconomics

ISBN: 9781292081977

8th Global Edition

Authors: Robert S. Pindyck, Daniel L. Rubinfeld

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