The real rate of interest on a fixed-rate loan: a. is the same as the effective rate.

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The real rate of interest on a fixed-rate loan:

a. is the same as the effective rate.

b. is reduced when inflation increases during the period of the loan.

c. is increased when inflation increases during the period of the loan.

d. is adjusted to reflect the impact of inflation during the period of the loan.

Posted Date: May 19, 2024 12:05 AM

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The real rate of interest on a fixed-rate loan: a. is the same as the effective rate.

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