Business, 08.04.2021 16:40 cricri2347

Suppose you borrow money at a nominal interest rate of 12%. At the time you borrow the money, you expect inflation to be 7%. The real interest rate you expect to pay on your loan is %. The real interest rate you actually pay back is %. Suppose that when you pay back the loan, inflation turned out to be 5%. The real interest rate you actually pay back is %.

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Suppose you borrow money at a nominal interest rate of 12%. At the time you borrow the money, you ex...

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