Three students have each saved $1000. Each has an investment opportunity in which he or she can invest up to $2000. Here are the rates of return on the students’ investment projects:Harry RonHermione5 percent 8 percent 20 percenta. If borrowing and lending are prohibited, so each student uses only personal saving to finance his or her own investment project, how much willeach student have a year later when the project pays its return?b. Now suppose their school opens up a market for loanable funds in which students can borrow andlend among themselves at an interest rate r. What would determine whether a student would choose to be a borrower or lender in this market?c. Among these three students, what would be the quantity of loanable funds supplied and quantity of loanable funds demanded at an interest rate of 7 percent? At 10 percent? Assume unlimited funds are available to be borrowed at these interest rates.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more