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Question
Suppose that you borrow $10,000 for one year, and at the end of the year, you must repay $10,450. Also, during that year inflation was 2.5%. The real interest rate is
A) 12.0 percent.
B) 7.0 percent.
C) 4.5 percent.
D) 2.0 percent.
Answer
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Related questions
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