With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6 percent. But if the rate of inflation was anticipated to be 4 percent, the bank would most likely charge the firm an annual interest rate of Select one CA. 2 percent 08, 4 percent OC 6 percent. D. 10 percent

Exploring Economics
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Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
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With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6 percent. But if the rate of inflation was anticipated to be 4 percent, the bank would most likely charge the firm an annual interest rate of

Select one

CA. 2 percent

08, 4 percent

OC 6 percent.

D. 10 percent

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