For years, General Motors was willing to make car loans through its GMAC subsidiary to car buyers

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For years, General Motors was willing to make car loans through its GMAC subsidiary to car buyers who could not borrow money from a bank. If a bank fails to make a loan to someone who wants to borrow money to buy a car, the bank is giving up the profit it could earn making the loan. If the bank finds the loan to be too risky, why would GMAC be willing to make it?
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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