If I lend my father $500 at a Nominal interest rate of 2%, and the inflation rate is 7%, the Real interest rate on the loan is % (put sign directly in front of number,no units, no decimal places) and this means this interest rate for me the lender is u (put either U for Unfair, or F for Fair).

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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If I lend my father $500 at a Nominal interest rate of 2%, and the inflation rate is 7%, the Real
interest rate on the loan is
% (put sign directly in front of number,no units, no
decimal places) and this means this interest rate for me the lender is U
(put
either U for Unfair, or F for Fair).
Transcribed Image Text:If I lend my father $500 at a Nominal interest rate of 2%, and the inflation rate is 7%, the Real interest rate on the loan is % (put sign directly in front of number,no units, no decimal places) and this means this interest rate for me the lender is U (put either U for Unfair, or F for Fair).
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