Solved

If You Want to Earn a Real Interest Rate of 3.5

Question 57

Multiple Choice
If you want to earn a real interest rate of 3.5% on money you lend and you expect that inflation will be 2.5%, what nominal rate of interest will you charge? A)1% B)5% C)6% D)9%

If you want to earn a real interest rate of 3.5% on money you lend and you expect that inflation will be 2.5%, what nominal rate of interest will you charge?


A) 1%
B) 5%
C) 6%
D) 9%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q52: If the nominal rate of interest is

Q53: Inflation that is _ than what is

Q54: Looking at the following table, what is

Q55: If the anticipated rate of inflation is

Q56: Looking at the following table, what is

Q58: Looking at the following table, real average

Q59: If the nominal interest rate is 8%

Q60: Using the following table, calculate real average

Q62: What is the result if inflation increases

Q242: What is the difference between the nominal

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents