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Case Study

Analyzing Interest Rate Policy and Inequality

Using the formula for the Gini coefficient in this model, g=(6s1)/5g = (6s - 1)/5, where 's' is the lender's share of income (s=r/Rs = r/R), calculate the Gini coefficient before and after the policy change described in the case study. Based on your calculations, what is the effect of this policy on income inequality?

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Updated 2025-09-14

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