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Social Studies, 29.10.2019 19:31 orieo

People anticipate the inflation rate to be 8%. banks are making loans at a 12% interest rate. therefore, a. the real rate of interest is 4% and the nominal rate is 12%. b. the real rate of interest is 12% and the nominal rate is 4%. c. the real rate of interest is 8% and the nominal rate is -4%. d. the real rate of interest is 12% and the nominal rate is 8%.

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