Your bank charges him an interest rate of 4% over the next year. the real the beginning of the loan contract is 3%, then which of the given rate of expected inflation over the upcoming year would be the most beneficial to you as the lender? An inflation rate_____________ A) below 0% B) greater than 3%. O C) between 0% and 3%. D) equal to 1%.

Your bank charges him an interest rate of 4% over the next year. the real the beginning of the loan contract is 3%, then which of the given rate of expected inflation over the upcoming year would be the most beneficial to you as the lender? An inflation rate_____________ A) below 0% B) greater than 3%. O C) between 0% and 3%. D) equal to 1%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please confirm my answer and justify!
Q9