Credit Market Model

Question 1


An explanation of the policy context in your field education experience

Be sure to support posts with specific references to this week’s resources and provide full APA citations for your references. 


Garthwait, C. L. (2017). The social work practicum: A guide and workbook for students (7th ed.). Upper Saddle River, NJ: Pearson.

  • Chapter 9, “The Social Policy Context of Practice” (pp. 97-108)

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Learning Objectives

Students will:

  • Analyze policy context in field education experience

Question 2

Q1) Determine what happens in the endogenous growth model if the government attempts to discourage the time spent in education, by reducing subsidies to education.

Q2) If a consumer in the two-period credit market model is initially a lender, and the real interest rate falls, determine what the consumer does in response.

Q3) In the credit market model with asymmetric information, determine how a consumer will respond to a decrease in the fraction of bad borrowers in the population.

Q4) Suppose, in the real intertemporal model, that there is lower friction in credit markets. What are the equilibrium effects? Explain

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