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A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 5%. 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 5%. The real interest rate for the bank's profit margin is 4%. The next year, unanticipated inflation has increased another 2%. 1. What is the new real interest rate? 2. Who did it hurt, the borrower or lender? Why? Edit View Insert Format Tools Table 12pt V Paragraph |BI U A

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