Suppose You Are a Lender and You Expect Inflation to Be

question 137

Multiple Choice

Suppose you are a lender and you expect inflation to be 4 percent over the next year because inflation was 4 percent in the last year. If you want to earn a real return of 2 percent on any loans you make, you will set the interest rate on your loans equal to:

• A)2 percent.
• B)4 percent.
• C)6 percent.
• D)10 percent.

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Definitions:

Gender Schemas

Cognitive structures that reflect the perceived societal expectations and stereotypes about gender roles and behaviors.

Masculine Or Feminine

Terms used to describe characteristics or attributes traditionally associated with men (masculine) or women (feminine).

Permanent

Something that is lasting or intended to last or remain unchanged indefinitely.

Puberty

A phase of development in which an individual's body matures into an adult body capable of sexual reproduction.