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

Question 127

Multiple Choice

According to the Fisher equation,if a bank extends a loan for 3 percent and the inflation rate ends up being 2 percent,the ________ interest rate is ________ percent.


A) nominal; 1
B) real; 1
C) nominal; -1
D) real; -1
E) nominal; 5

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