Multiple Choice
Suppose you borrow $2000 for one year and at the end of the year you repay the $2000 plus $110 of interest.If the expected inflation rate was 2.2% at the time you took out the loan,what was the real interest rate you paid?
A) 2.2%
B) 3.3%
C) 5.5%
D) 7.7%
Correct Answer:
Verified
Correct Answer:
Verified
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