Question: In a multiyear loan contract, the interest rate is reset each year to reflect changes in anticipated inflation, based on the first years anticipated inflation,

In a multiyear loan contract, the interest rate is

reset each year to reflect changes in anticipated inflation, based on the first years anticipated inflation, based on the last years anticipated inflation, based on the average anticipated annual inflation over the life of the contract, based on the average past inflation over a period of time equal to the life of the loan

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