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The proportion of an amount loaned which a lender charges as interest to the borrower, normally expressed as an annual percentage. The interest rate is typically determined by a combination of market forces and monetary policy.

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This came in late but let me simplify things a little bit, An increased Real G.D.P of an economy will lead to Increase in Demand, Which will lead to Increase in Prices(inflation), this will then lead …
answered Oct 7 '18 by Joel Usim