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Determine the real rate of interest

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Reference no: EM131258527

a) To what extent does the prevailing market rate of interest influence the performance of an economy.

b) Argue for and against interest rate decontrols.

c) In a given economy, the nominal rate of interest is 10% while the inflation is 12%. Determine the real rate of interest.

d) State and explain the factors that have caused banking crisis in developing countries.

Reference no: EM131258527

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