This is a macroeconomics question.

1.3 Dynamic Equilibrium (10 points) Write down the definition of equilibrium carefully. Look at slide 25 in lecture note 7 for an example. If, in equilibrium, the firm is really indifferent between bonds and equity financing, how many possible equilibria are there? Consider that the market clear for shares is simply Vt : St = 1. That is, since there is only one representative household and one representative firm the entire shares of the firm (normalized to 1, meaning 100% of the shares) needs to be owned by the household in equilibrium (shares of the firm cannot be "un-owned")