Modify the Diamond-Dybvig model in the following way: Suppose that there are two assets, an illiquid asset that returns (1 + R) units of consumption goods in period 2 for each unit invested in period 0 and a liquid asset that returns one unit of consumption goods in period 1 (nothing in period 2) for each unit invested in period 0. The illiquid asset cannot be liquidated in period 1. Required:
a. Determine a consumers lifetime budget constraint when there is no bank, show this in a diagram, and determine the consumer's optimal consumption when an early consumer and when a late consumer in the diagram.
b. Determine a bank's lifetime budget constraint, show this in your diagram, and determine the optimal deposit contract for the bank in the diagram Are consumers who deposit in the bank better off than in part (a)? Explain why or why not?
c. Is there a bank run equilibrium? Explain why or why not?

Acompany is developing a new high­performance wax for cross country ski racing. in order to justify the price marketingwants, the wax needs to be very fast. specifically, the mean time to finish their standard test course should be less thanseconds for a former olympic champion. to test it, the champion will ski the course 8 times. the champion's times(selected at random) are 59.9 61.9 48.8 52.2 46.6 45.3 50.6 and 41.1 seconds to complete the test course. complete parts a and b below.a) should they market the wax? assume the assumptions and conditions for appropriate hypothesis testing are metfor the sample.assume=0.05. what are the null and alternative hypotheses? choose the correct answer below.b) suppose they decide not to market the wax after the test, but it turns out that the wax really does lower the champion'saverage time to less thanseconds. what kind of error have they made? explain the impact to the company of such anerror.

Robert black, regional manager for ford in texas and oklahoma, faced a dilemma. the ford f-150 pickup truck was the best-selling pickup ever, yet ford's headquarters in detroit had decided to introduce a completely redesigned f-150. how could mr. black sell both trucks at the same time? he still had "old" f-150s in stock. in his advertising, mr. black referred to the new f-150s as follows: "not a better f-150. just the only truck good enough to be the next f-150." this statement represents ford's of the new f-150.

Presented below is information for annie company for the month of march 2018. cost of goods sold $245,000 rent expense $ 36,000 freight-out 7,000 sales discounts 8,000 insurance expense 5,000 sales returns and allowances 11,000 salaries and wages expense 63,000 sales revenue 410,000 instructions prepare the income statement.