Question: A 1 percentage point increase (decrease) in the market interest rate leads to a 0.3 percentage point increase (decrease) in the rate paid on savings

A 1 percentage point increase (decrease) in the market interest rate leads to a 0.3 percentage point increase (decrease) in the rate paid on savings deposits (including money-market deposit accounts). 2. A 1 percentage point increase (decrease) in the market rate leads to a 0.6 percentage point increase (decrease) in the rate paid on new time deposits. 3. Bank's tax rate = 30 percent

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