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Suppose you borrow​ $1,000 at an interest rate of 12 percent. if the expected real interest rate is 5​ percent, then the rate of inflation over the upcoming year that would be most beneficial to you would
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Suppose you borrow​ $1,000 at an interest rate of 12 percent. if the expected real interest rate is 5​ percent, then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

User Chris Montanaro
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1 Answer

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1000 / 5 = 20.0 % rate of inflation
User Vader B
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