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What are the firm’s payments to the union?

If the firm agrees to give in after a strike length of s. What length of strike will the firm choose, as a function of a and b? What are the firm’s payments to the union? Depict your solution in a graph.

Your bank has the following balance sheet

Rate-sensitive$100 millionRate-sensitive$75 million
Fixed-rate100 millionFixed-rate125 million

What would happen to bank profits if the interest rates in the economy go down? Is there anything that you could do to keep your bank from being so vulnerable to interest rate movements?


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