Most large banks charge the same or nearly the same prime


Question: Most large banks charge the same or nearly the same prime interest rate. In fact, banks avoid changing the rate; they try to do it only when market conditions require an adjustment. When that happens, one of the major banks announces a change in its rate and other banks quickly follow suit. Is this an example of price leadership or the kinked demand curve? Explain.

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Macroeconomics: Most large banks charge the same or nearly the same prime
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