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When economic activity weakens, monetary policymakers can push the interest rate target (adjusted for inflation) temporarily below the economy’s natural rate, which lowers the real cost of borrowing.
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However, when we include credit fees in the calculation for the percentage it gives us the APR.
In most cases, the loan payments are of equal size and can be made biweekly, semi-monthly, or monthly.
States impose a SOL that dictates how long a lender or collections agency has to sue the borrower for the debt.
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