Judy runs a bank and believes interest rates will increase in the future. Explain what size interest rate gap the bank should have and why.

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter12: Money And The Banking System
Section: Chapter Questions
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Judy runs a bank and believes interest rates will increase in the future. Explain what size interest rate gap the bank should have and why.  

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