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Assume you borrow money to buy a new car at 10 percent interest, and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent. If you are correct in your assumption,
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Assume you borrow money to buy a new car at 10 percent interest, and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent. If you are correct in your assumption, your real rate of interest on the car loan will be

User Hannoun Yassir
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18 votes
18 votes

Answer:

The answer is 2%

Step-by-step explanation:

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User Dimitra
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