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Author Question: Suppose you lend me $100 for a year, and I agree to pay you $110 at the end of one year (principal ... (Read 28 times)

najmarocks25

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on: Oct 12, 2022

Question 1

Suppose the nominal interest rate is 10%. The rate of inflation has been 4% and is expected to continue at 4% in the future. The real interest rate, which determines the firm's decision to purchase capital, is therefore
◦ 4%.
◦ 6%.
◦ 14%.
◦ 10%.
◦ indeterminate.

Question 2

Suppose you lend me $100 for a year, and I agree to pay you $110 at the end of one year (principal plus interest). Over the intervening year, however, the average price of goods in the economy rises by 3%. The real rate of return that you will earn on your loan to me is therefore equal to
◦ 7%.
◦ 3%.
◦ 13%.
◦ 10%.
◦ greater than 13%.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by najmarocks25 on Oct 12, 2022

breounasmoot

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Reply #1 on: Oct 12, 2022
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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najmarocks25

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Reply 2 on: Oct 12, 2022
Excellent

Liamb2179

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

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