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(Solved): Assume you are a lender. You estimate inflation for 2020 to be 3%. You charged a nominal interest ra ...



Assume you are a lender. You estimate inflation for 2020 to be 3%. You charged a nominal interest rate of 5%. If actual inflation was 1%. Group of answer choices You (lender) won because you earned higher real interest than agreed You (lender) lost because you earned a negative real return Borrower won because s/he paid higher real interest than agreed None of these answers is correct You (lender) won because you earned higher nominal interest than agreed



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