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Question
An investor loaned money at 14 percent with an expected rate of inflation of 11 percent. During the year the actual rate of inflation was 8 percent. The investor's expected real rate of interest was _____ and the realized real rate for the investor was ______?a. 14 percent; 8 percent.
b. 6 percent; 3 percent.
c. 3 percent; 3 percent.
d. 3 percent; 6 percent.
Answer
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Related questions
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