Question: I've been stuck on this question for over a week! Please help ASAP. Thank you!!!! Suppose the interest rate rises so that microcredit program participants

I've been stuck on this question for over a week! Please help ASAP. Thank you!!!!

Suppose the interest rate rises so that microcredit program participants must make payments of 35 rather than 30 in periods 1 and 2. Now who participates and which projects do they undertake?

Project Description

Setup cost

Profits delivered by business in each of three periods

Period 1

Period 2

Period 3

Purchase inventory for small retail operation

Low skill

50

25

25

0

High skill

50

40

40

0

Purchase sewing machine for tailoring business

Low skill

70

0

0

0

High skill

70

0

60

60

Impact on average consumption for:

Participate (yes or no)

Period 1

Period 2

Period 3

Group 1

0

0

0

Group 2

10

10

0

Group 3

-50

30

60

Microcredit program

Participants

-10

16.6

20

Percent of microcredit program participants whose consumption is raised by at least 15 in the given period

0

33

33

Impact on average consumption for:

Participate (yes or no)

Period 1

Period 2

Period 3

Group 1

0

0

0

Group 2

10

10

0

Group 3

-50

30

60

Microcredit program

Participants

-10

16.6

20

Percent of microcredit program participants whose consumption is raised by at least 15 in the given period

0

33

33

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