How much should a bank charge for a loan, if the anticipated inflation rate is 3 percent, and the bank wants to earn 3 percent on this $1,000,000 loan?
A) $30,000
B) $10,000
C) 6 percent
D) 0 percent
Correct Answer:
Verified
Q349: The term "business fluctuations" refers to
A) changes
Q350: The real rate of interest can be
Q351: Who is likely to be helped by
Q352: If a bank advertises 3 percent interest
Q353: Suppose the rate of inflation unexpectedly decreases
Q355: Empirical evidence shows that the nominal interest
Q356: The real interest rate is
A) the nominal
Q357: Which one of the following would benefit
Q358: If the nominal interest rate is 4
Q359: During an unanticipated inflation
A) creditors are helped
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