10 A lender who does not expect any change in the price level is willing to make...

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10 A lender who does not expect any change in the price level is willing to make a mortgage loan at a 10 percent rate of interest. If that same lender anticipates a future inflation rate of 5 percent, she will charge the borrower ■

a. 5 percent interest.

b. 10 percent interest.

c. 15 percent interest.

d. 2 percent interest.

e. .5 percent interest.

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Fundamentals Of Economics

ISBN: 9780618992676

4th Edition

Authors: William Boyes , Michael Melvin

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