Multiple Choice
Jennifer took out a fixed-interest-rate loan when the CPI was 100.She expected the CPI to increase to 103 but it actually increased to 105.The real interest rate she paid is
A) higher than she had expected,and the real value of the loan is higher than she had expected.
B) higher than she had expected,and the real value of the loan is lower than she had expected.
C) lower than she had expected,and the real value of the loan is higher than she had expected.
D) lower then she had expected,and the real value of the loan is lower than she had expected.
Correct Answer:
Verified
Correct Answer:
Verified
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