Reference: Ref 12-4 (Table: Anticipating Inflation) Using the inflation data in the table above, assume that all loan contracts had fixed nominal interest rates of 10 percent and matured after one year. In which year did lenders receive exactly the amount of real interest they expected?
A) 2000
B) 2002
C) 2003
D) 2004

Question

Reference: Ref 12-4 (Table: Anticipating Inflation) Using the inflation data in the table above, assume that all loan contracts had fixed nominal interest rates of 10 percent and matured after one year. In which year did lenders receive exactly the amount of real interest they expected?
A) 2000 
B) 2002 
C) 2003 
D) 2004

Quizplus · Accepted Answer

The Answer of  Reference: Ref 12-4 (Table: Anticipating Inflation) Using the inflation data in the table above, assume that all loan contracts had fixed nominal interest rates of 10 percent and matured after one year. In which year did lenders receive exactly the amount of real interest they expected?
A) 2000 
B) 2002 
C) 2003 
D) 2004

Reference: Ref 12-4 (Table: Anticipating Inflation) Using the Inflation Data