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Consequences on a country real gdp

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Reference no: EM133215224

Much concern has been noted on declining housing prices recently brought about by the increase in interest rates. On the part of potential homebuyers and consumers, middle income earners are finding it harder to own their own dream houses. The increasing interest rate has been taking the dominant issue in the financial sector with the US Federal Reserve's at the forefront of leading indicator on this. Question: How does this increase in interest rate affect savings and investment and its consequences on a country's Real GDP?

Reference no: EM133215224

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