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2) For each of the below, select a, b, or c. Justify your answer briefly. Rates are annual with annual compounding. A. Interest rate is

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2) For each of the below, select a, b, or c. Justify your answer briefly. Rates are annual with annual compounding. A. Interest rate is positive and the inflation rate is positive. Do you prefer receiving: a. $1 at t = 0 b. 1 real dollar att = 10 c. Not enough information to determine whether a orb is preferred B. Interest rate is 5% and the inflation rate is 5%. Do you prefer receiving: a. 10 real dollars at t = 10 b. 11 real dollars at t = 12 c. Not enough information to determine whether a orb is preferred C. Inflation rate is positive and the real risk free rate is positive. Do you prefer receiving: a $10 at t = 10 b. $11 at t = 11 c. Not enough information to determine whether a orb is preferred D. Real interest rate is negative and inflation is positive. Do you prefer: a. 1 real dollar at t = 10 b. $1 at t = 0 c. Not enough information to determine whether a orb is preferred

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