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5b) Imagine that a household has a 50,000 mortgage on which its bank currently charges 7% p.a. Suppose that it also has 8,000 in a

5b) Imagine that a household has a 50,000 mortgage on which its bank currently charges 7% p.a. Suppose that it also has 8,000 in a deposit account which pays 3% pa. what does this tell you about the value which this household places upon liquidity

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