If a Lender Expects an Inflation Rate of 5% but the Inflation

question 97

Multiple Choice

If a lender expects an inflation rate of 5% but the inflation rate unexpectedly increases to 7% and if the nominal interest rate was 10%,what is the real rate of interest earned?

• A) 2%
• B) 3%
• C) 4%
• D) 5%

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The design and appearance of printed or displayed text characterized by its style, size, and family.

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A framework of spaced bars that are parallel to or cross each other to form squares or rectangles.

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