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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1408 |
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Okun's law states that, "for every 1 percentage point by which the actual unemployment rate exceeds the natural rate, a negative GDP gap of about 2 percent occurs" (McConnell & Brue, 2004, p. 138).
Interest Rates
The interest rate is the price a consumer pays for borrowing money. Just like other economic factors, economists breakdown interest rates into several categories as follows: the pure rate of interest, the nominal interest rate, and the real interest rate...
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Just like other economic factors, economists breakdown interest rates into several categories as follows: the pure rate of interest, the nominal interest rate, and the real interest rate. One contributing factor toward determining the interest rate is the Federal funds rate. In general, interest rates in the financial district will rise and fall based on the fluctuation of the Federal funds rate...
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General points of the essay
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