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Other Fields Homework Help Economics Topic started by: NYC on Jan 12, 2016



Title: Kyle wants to borrow $500 from Stan. Stan wants to make 8% real return on his money, so they both ag
Post by: NYC on Jan 12, 2016
Kyle wants to borrow $500 from Stan. Stan wants to make 8% real return on his money, so they both agree on an 8% interest rate paid next year. Both don't anticipate the -3% inflation next year. In this case:
A) Stan is better off.
B) Kyle will pay an 11% nominal interest rate.
C) Kyle will pay an 8% real interest rate.
D) all of the above


Title: Re: Kyle wants to borrow $500 from Stan. Stan wants to make 8% real return on his money, so they bot
Post by: Jesslyn on Jan 26, 2016
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Title: Re: Kyle wants to borrow $500 from Stan. Stan wants to make 8% real return on his money, so they both ag
Post by: NYC on Jan 28, 2016
Perfect answer, thank you