Question: Jane wants to borrow $ 1 0 0 from Jack. Jack wants to make 5 % real return on his money, so they both agree

Jane wants to borrow $100 from Jack. Jack wants to make 5% real return on his money, so they both agree on a 5% interest rate paid next year. Both don't anticipate the 3% inflation next year. In this case,
Jane will pay $8 a year from now on
Jack will recelve more than 5% of real rate of return a year from now.
Jane is better off
Jack is better off
Jane wants to borrow $ 1 0 0 from Jack. Jack

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