Zoro agreed to make a loan to Kenneth based on an interest rate charge of 8% per annum. Which of the following represents a possible value of the expected inflation rate if Zoro wants to earn more than 5% from the loan? Group of answer choices a. 2% b. 3% c. 5% d. 13%
Zoro agreed to make a loan to Kenneth based on an interest rate charge of 8% per annum. Which of the following represents a possible value of the expected inflation rate if Zoro wants to earn more than 5% from the loan? Group of answer choices a. 2% b. 3% c. 5% d. 13%
Chapter13: Inflation
Section: Chapter Questions
Problem 8SQP
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Question
Zoro agreed to make a loan to Kenneth based on an interest rate charge of 8% per annum. Which of the following represents a possible value of the expected inflation rate if Zoro wants to earn more than 5% from the loan?
Group of answer choices
a. 2%
b. 3%
c. 5%
d. 13%
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