Solved

You Want to Make a 10% Real Return on a Loan

Question 262

Multiple Choice

You want to make a 10% real return on a loan that you are planning to make, and the expected inflation rate during the period of the loan is 4%. You should charge a nominal interest rate of


A) -6%.
B) 6%.
C) 10%.
D) 14%.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q257: For the 1952-2014 period in the United

Q258: If the unemployment rate is 6.2% and

Q259: The natural rate of unemployment is the

Q260: Refer to the information provided in Table

Q261: Which of the following increases the real

Q263: Which of the following is considered economic

Q264: If more workers have more capital to

Q265: The index used most often to measure

Q266: Refer to the information provided in Table

Q267: Which of the following statements is false?<br>A)