Financial crisis: suppose that banks are less able to raise funds and so lend less. consequently, because people and households are less able to borrow, they spend less at any given price level than they would otherwise. the crisis is persistent so lending should remain depressed for some time.
refer to financial crisis: suppose the economy reaches long-run equilibrium without the fed responding. now suppose the financial crisis ends and the ability of banks to lend returns to normal. in which case is the price level lower compared to its value prior to the crisis?
a. after the economy reaches long-run equilibrium during the crisis but not in the long-run equilibrium after the crisis is over
b. in the long-run equilibrium after the crisis is over but not after the economy reaches long-run equilibrium during the crisis
c. both after the economy reaches long-run equilibrium during the crisis and in the long-run equilibrium after the crisis is over
d. neither after the economy reaches long-run equilibrium during the crisis nor in the long-run equilibrium after the crisis is over

Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience.type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.120.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.

Post test question number 9 for entering the job market

Dakota products has a production budget as follows: may, 16,000 units; june, 19,000 units; and july, 24,000 units. each unit requires 3 pounds of raw material and 2 direct labor hours. dakota desires to keep an inventory of 10% of the next month’s requirements on hand. on may, 1 there were 4,800 pounds of raw material in inventory. direct labor hours required in may would be: