You Want to Make a 10% Real Return on a Loan

question 228

Multiple Choice

You want to make a 10% real return on a loan that you are planning to make, and the expected inflation rate during the period of the loan is 10%. You should charge a nominal interest rate of

• A) 0%.
• B) 5%.
• C) 10%.
• D) 20%.

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Definitions:

Ecosystemic Collapse

A dramatic decline in an ecosystem's structure, function, and diversity, potentially leading to the loss of significant ecological services.

Seafaring Polynesians

Describes the maritime culture of the Polynesian people, known for their long-distance ocean voyaging and navigation skills.

Primary Resources

Original materials or data that have not been altered or evaluated, used in research or study.

Domesticated In Mexico

Refers to plants or animals that were first domesticated within the geographic region of Mexico, such as maize and the turkey.