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    Lola Wants to Make an 6% Real Return on a Loan
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Lola Wants to Make an 6% Real Return on a Loan

Question 170

Question 170

Multiple Choice

Lola wants to make an 6% real return on a loan that she is planning to make, and the expected inflation rate during the period of the loan is 5%. She should charge an interest rate of


A) 1%.
B) 6%.
C) 11%.
D) 16%.

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