Marge Is Lending Martin $1,000 for One Year

question 147

Multiple Choice

Marge is lending Martin $1,000 for one year.The consumer price index is 160 at the time the loan is made and they expect it to be 176 in one year.If Marge and Martin agree that Marge should earn a 3% real return for the year,the nominal interest rate on this loan should be

• A) 0%.
• B) 3%.
• C) 7%.
• D) 10%.
• E) 13%.

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Definitions:

Civil Rights

The rights of citizens to political and social freedom and equality, often protected by law against discrimination or oppression.

Generalized Powerlessness

A feeling or belief that one has little to no control over the events in their life, often perceived as a widespread or all-encompassing sensation.

Values And Occupation

The relationship between personal beliefs and ethics and one's professional career or choice of job.

Neatness

The quality of being clean, orderly, and well-organized, often reflecting on one's personal habits or the presentation of their work.