Question: ( Circle the answer between the two choices - increase of decrease - and write the rate. ) Assuming that the average duration of its

(Circle the answer between the two choices - increase of decrease - and write the rate.) Assuming that the average duration of its assets is four years, while the average duration of its liabilities is seven years, then a 2.5 percentage point decrease in interest rates will casse the profit of Firnt National Bank to (increase , decrease) by percest of the total origienl asset value.
( Circle the answer between the two choices -

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