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Home Q & A Board Other Fields Homework Help Business Economics
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hardy7luver hardy7luver
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A year ago
The following table lists some economic agents and their intentions. At present the interest rate is 5 percent.

WhoIntentAmount Needed
Mike Save for child's college$50,000
SophieBuy a car$10,000
Pie's PizzaExpand restaurant$100,000
SaraSave for retirement$100,000

Refer to the table above. You learn that currently the nominal interest rate lies below the real interest rate. From this you can infer that ________.

▸ inflation is negative, and Sophie will end up paying off her loan faster than expected

▸ inflation is positive, and Sophie will end up paying her loan off faster than expected

▸ inflation is negative, and Sophie will end up paying her loan off slower than expected

▸ inflation is negative, and Sophie will end up paying off her loan slower than expected
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Macroeconomics

Macroeconomics


Edition: 3rd
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duankong-feiduankong-fei
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A year ago
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hardy7luver Author
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A year ago
This site is awesome
apelton
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Yesterday
Brilliant ツ
amandamraz
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2 hours ago
Good timing, thanks!
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