In a given economy the nominal rate of interest is 10 while


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.

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Macroeconomics: In a given economy the nominal rate of interest is 10 while
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