Multiple Choice

In a simplified economic model with one lender and five borrowers, the lender's total income is represented by 5s and each borrower's income is 1-s, where s is the share of income (between 0 and 1) paid to the lender. If the observed income difference between the lender and a single borrower is 2.0 units, what is the value of the share s?

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Updated 2025-08-02

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