Suppose you lent money to a friend a few years ago at a nominal interest rate of 6%. At the time othe loan, you expected the annual inflation rate to be 2%, but the actual annual inflation rate was 1.2%. When the loan originated, you expected to earn a real return of but due to unexpected disinflation, you earned an actual real return of A. 2%; 1.2% B. 4.8%; 6% C. 6%; 4.8% D. 4%; 4.8%

Suppose you lent money to a friend a few years ago at a nominal interest rate of 6%. At the time othe loan, you expected the annual inflation rate to be 2%, but the actual annual inflation rate was 1.2%. When the loan originated, you expected to earn a real return of but due to unexpected disinflation, you earned an actual real return of A. 2%; 1.2% B. 4.8%; 6% C. 6%; 4.8% D. 4%; 4.8%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price per Unit in Units Purchased 2008 2009 2010 Good A 5 $1.00 $1.50 $1.50 Good B 10 $2.00 $2.50 $3.00 Good C 4 $4.00 $4.50 $5.00 If 2009 is the base year, the inflation rate between 2008 and 2009 is Select one: Oa. 20.4% Ob. 14.1% Oc 23.2% Od. 18.8% here to search
Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation
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