Question: Suppose the population of Area Y is relatively young while that of Area O is relatively old, but everything else about the two areas is

Suppose the population of Area Y is relatively young while that of Area O is relatively old, but everything else about the two areas is equal.

a. Would interest rates likely be the same or different in the two areas? Explain.

b. Would a trend toward nationwide branching by banks and savings and loans, and the development of nationwide diversified financial corporations, affect your answer to part a?

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