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wilcoxj49 wilcoxj49
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3 months ago
A firm takes a 2-year loan at a nominal interest rate of 8 percent. It believes that the inflation rate will be 4 percent this year and 2 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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KFordKFord
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3 months ago
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5 percent
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wilcoxj49 Author
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3 months ago
Thank you, thank you, thank you!
Marcie D
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Yesterday
Correct Slight Smile TY
aricketts6@
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2 hours ago
You make an excellent tutor!
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