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Title: A business borrows from a bank at 7 percent but expects 3 percent general inflation in the economy. ... Post by: joanne1718 on Oct 30, 2019 A business borrows from a bank at 7 percent but expects 3 percent general inflation in the economy. What are the nominal and real rates of interest facing this borrower?
Title: A business borrows from a bank at 7 percent but expects 3 percent general inflation in the economy. ... Post by: Kutthroat Kane on Oct 30, 2019 The borrower's nominal interest rate is 7 percent and the real interest rate is 4 percent.
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