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    Principles of Economics Study Set 1
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    Exam 18: Measuring the Price Level and Inflation
  5. Question
    To Obtain a Given Real Rate of Return, Lenders Must
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To Obtain a Given Real Rate of Return, Lenders Must

Question 136

Question 136

Multiple Choice

To obtain a given real rate of return, lenders must charge a ________ nominal interest rate in the face of increasing inflation.


A) deflated
B) higher
C) lower
D) constant

Correct Answer:

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