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Author Question: You want to make a 10% real return on a loan that you are planning to make, and the expected ... (Read 78 times)

bcretired

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on: Apr 19, 2019

Question 1

If Homer is paid an interest rate of 2% on his savings, but the inflation rate is 12%, the real interest rate Homer earns is


◦ -12%.
◦ -10%.
◦ 2%.
◦ 14%.

Question 2

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


◦ 0%.
◦ 5%.
◦ 10%.
◦ 20%.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by bcretired on Apr 19, 2019

KKcool

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bcretired

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Reply #2 on: Apr 19, 2019
Thank you!


KKcool

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Reply #3 on: Apr 19, 2019
Always glad to help...


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