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Question: The First State Bank of Gregsville reports a net interest margin of 2.5 percent in its most recent financial report, with total interest revenue of $88 million and total interest costs of $72 million. What volume of earning assets must the bank hold? Suppose the bank's interest revenues rise by 8 percent and its interest costs and earning assets increase 9 percent. What will happen to Gregsville's net interest margin?

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