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Hello, can you please answer the question below. Thank you! These are the four equations of borrower and lender. E(y1)= 616-564i E(y2)= 548-492i E(?1)= -78+564i

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Hello, can you please answer the question below. Thank you!

These are the four equations of borrower and lender.

E(y1)= 616-564i

E(y2)= 548-492i

E(?1)= -78+564i

E(?2)=-150+492i

image text in transcribed
Now let's examine the impact of asymmetric information on the credit market equilibrium. Specifically, in this question, we assume that Miki is not able to observe or enforce the project that the borrower chooses. As a result, the loan contract can only specify the interest rate (not the project). Everything else remains as in question 1. a. What type of asymmetric information problem does Miki face? Write a short explanation justifying your

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