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A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 14%. The real interest rate for

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A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 14%. The real interest rate for the bank's profit margin is 8%. The next year, unanticipated DEFLATION has decreased prices 6%. 1. What is the new real interest rate? 2. Who did it hurt, the borrower or lender? Why

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