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What determines the interest rate in a small open economy?
Coastal Town
A town located on or near a coast, often characterized by its relationship to the ocean and its impact on the local economy and culture.
Moral Hazard Problem
A situation in which one party engages in risky behavior knowing that it is protected against the consequences, usually by insurance or other safety nets.
Financially Distressed Banks
Financially distressed banks are financial institutions experiencing significant financial difficulties, potentially leading to insolvency or the need for external financial assistance.
Risky Projects
Initiatives or investments that have a significant chance of failure or result in negative outcomes but also offer potential high rewards.
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