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According to the Fisher Equation,if a Bank Extends a Loan

Question 90

Multiple Choice

According to the Fisher equation,if a bank extends a loan for 3 percent and the inflation rate ends up being 5 percent,the ________ interest rate is ________ percent.


A) nominal; 2
B) real; 2
C) nominal; -2
D) real; -2
E) nominal; 8

Correct Answer:

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