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Other Fields Homework Help Economics Topic started by: JSmith1 on Dec 27, 2022



Title: A firm takes out a 2-year loan at a nominal interest rate of 7 percent. It believes that the ...
Post by: JSmith1 on Dec 27, 2022
A firm takes out a 2-year loan at a nominal interest rate of 7 percent. It believes that the inflation rate will be 2 percent this year and 4 percent next year. What annual average real interest rate does the firm expect to pay?

▸ 2 percent

▸ 3 percent

▸ 4 percent

▸ 5 percent


Title: A firm takes out a 2-year loan at a nominal interest rate of 7 percent. It believes that the ...
Post by: Sagxar on Dec 27, 2022
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