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What is the role of expectations in interest rate determination? How do expectations affect real and...

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Finance

What is the role of expectations in interest rate determination?How do expectations affect real and nominal interest rates? How andwhy do lenders make interest rate adjustments? How does this affectborrowers?

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Expectations are probabilistic terms therefore the expectations cannot be mentioned with certainty and there is an element of uncertainty The role of expectations in interest rate    See Answer
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