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Author Question: Suppose you lend 1,000 at an interest rate of 10 percent over the next year. If the expected real ... (Read 117 times)

ashley

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Suppose you lend 1,000 at an interest rate of 10 percent over the next year.
 
  If the expected real interest rate at the beginning of the loan contract is 4 percent, then what rate of inflation over the upcoming year would be most beneficial to you as the lender? An inflation rate
  A) equal to 4 percent. B) equal to 0 percent.
  C) equal to 6 percent. D) greater than 6 percent.

Question 2

Refer to Figure 18-1. The appreciation of the dollar is represented as a movement from
 
  A) D to C. B) C to B. C) B to A. D) C to A.



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epscape

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Answer to Question 1

B

Answer to Question 2

A




ashley

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Reply 2 on: Jun 29, 2018
:D TYSM


dyrone

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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