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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 1111 times)

ashley

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on: Jun 29, 2018
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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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


ashley

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Reply 2 on: Jun 29, 2018
:D TYSM

FergA

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

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