How are interest rates determined in a market economy?

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How are interest rates determined in a market economy?

  • How are interest rates determined in a market economy? In your answer, address how interest rates fluctuate in general in the overall loanable funds (or credit) market and how (and why) individual interest rates will vary.
  • Explain four specific reasons why wages for identical or different jobs will vary in the economy.
  • Explain three ways in which labor unions might attempt to increase wages in the labor market. Be specific in your answer.

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