If inflation is anticipated to be 6 percent during the next year, while the real rate of

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If inflation is anticipated to be 6 percent during the next year, while the real rate of interest for a one-year loan is 5 percent, then what should the nominal rate of interest be for a risk-free one-year loan?

6%.

5%.

12%.

11%

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Macroeconomics Principles, Applications, and Tools

ISBN: 978-0132555234

7th Edition

Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez

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Posted Date: Oct 25, 2022 03:50 AM

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If inflation is anticipated to be 6 percent during the next year, while the real rate of

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Macroeconomics Principles, Applications, and Tools

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