Multiple Choice
With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6 percent.But if the rate of inflation was anticipated to be 4 percent, the bank would most likely charge the firm an annual interest rate of
A) 2 percent.
B) 4 percent.
C) 6 percent.
D) 10 percent.Difficulty: 02 Medium
Correct Answer:
Verified
Correct Answer:
Verified
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