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Other Fields Homework Help Economics Topic started by: Ao9 on Oct 27, 2015



Title: In the two-period model with asymmetric information, the presence of bad borrowers who always defaul
Post by: Ao9 on Oct 27, 2015
In the two-period model with asymmetric information, the presence of bad borrowers who always default
A) affects good borrowers adversely.
B) matters only for the loan interest rate faced by bad borrowers.
C) makes good borrowers better off.
D) affects the equilibrium profits of banks.


Title: Re: In the two-period model with asymmetric information, the presence of bad borrowers who always de
Post by: Gordis on Oct 29, 2015
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Title: Re: In the two-period model with asymmetric information, the presence of bad borrowers who always defaul
Post by: Ao9 on Nov 2, 2015
Expert ^^ :D


Title: Re: In the two-period model with asymmetric information, the presence of bad borrowers who always defaul
Post by: Gordis on Nov 2, 2015
I'm assuming I was right? ;) Don't forget to mark as solved.