During the last tax year you lent money at a nominal rate of 6 percent. Actual...
Homework Answers
Actual inflation=1.5. Actual real interest paid=6-1.5=4.5%
Expected inflation rate=1%. Expected real interest rate=5
transferred wealth from you to borrower and caused your after tax real interest rate to be 0.5% points lower than that you had expected.
ans is B
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thereby (Increasing or Decreasing) the quantity of
investment in the economy and (Increasing or Decreasing) the
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