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If a Lender Wants a Real Return of 6 Percent

Question 43

Multiple Choice

If a lender wants a real return of 6 percent and she expects inflation to be 4 percent,which of the following is the correct nominal interest rate to charge?


A) 4 percent
B) 6 percent
C) 2 percent
D) 10 percent
E) -2 percent

Correct Answer:

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