Question 14 1 pts Consider the model of leverage cycles discussed in lectures. Suppose investors are endowed with one unit of money and two units of the asset. Assume that the asset pays a return of 1 in the good state of the world and 0.4 in the bad state of the world. Assume other aspects of the model presented in lectures are unchanged. In a world without borrowing, which two equations could be used to solve for the equilibrium price and quantity? O p = h +0.4 (1 h) and h* = (1- h*)/p* O p*=h* + 0.4 (1-h*) and 2 h* = (1-h*)/p* Op*=h* + 0.8 (1 -h*) and h* = (1-h*)/p* None of the above. Question 14 1 pts Consider the model of leverage cycles discussed in lectures. Suppose investors are endowed with one unit of money and two units of the asset. Assume that the asset pays a return of 1 in the good state of the world and 0.4 in the bad state of the world. Assume other aspects of the model presented in lectures are unchanged. In a world without borrowing, which two equations could be used to solve for the equilibrium price and quantity? O p = h +0.4 (1 h) and h* = (1- h*)/p* O p*=h* + 0.4 (1-h*) and 2 h* = (1-h*)/p* Op*=h* + 0.8 (1 -h*) and h* = (1-h*)/p* None of the above