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JSmith1 JSmith1
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A year ago
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
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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SagxarSagxar
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#1
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A year ago
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JSmith1 Author
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A year ago
Good timing, thanks!
GeorgeNeist
wrote...

Yesterday
Thanks
bahajo
wrote...

2 hours ago
this is exactly what I needed
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