Multiple Choice
Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent.At the end of the year prices have actually risen by 7 percent.Gladys earned a real rate of return of
A) Negative 2%.
B) 2%.
C) 5%.
D) 7%.
Correct Answer:
Verified
Correct Answer:
Verified
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