Multiple Choice
Lillian loaned A.J. $10,000 and increased her purchasing power by $200 when A.J. repaid the loan a year later. Deflation of 2% also occurred that year. What nominal interest rate did Lillian charge A.J.?
A) 0%
B) 2%
C) 4%
D) 2.5%
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q32: Which of the three price indexes measures
Q33: If the inflation rate falls from 4%
Q36: When the price of a good in
Q39: The realized real rate of return for
Q41: If velocity is constant and the economy's
Q63: When a nation has a money supply
Q71: In hyperinflationary situations,one might expect the velocity
Q90: When the expected rate of inflation is
Q97: If a lender expects an inflation rate
Q122: The quantity theory of money is consistent