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If the Borrower and Lender Agree to a Loan at 8

Question 168

Multiple Choice

If the borrower and lender agree to a loan at 8% when the inflation rate is 3%,then 8% is the ________ interest rates and 5% is the _________ interest rate.


A) real;nominal
B) nominal;real
C) relative;nominal
D) real;relative
E) nominal;relative

Correct Answer:

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