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Aaron Rogers booked a trip to New York and he's counting on his investment earnings to pay for the trip. His investment will pay him

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Aaron Rogers booked a trip to New York and he's counting on his investment earnings to pay for the trip. His investment will pay him 7.5% return and he is aware that the inflation expectations are running at 3%. Which of the following is true for Aaron as he plans on joining the Jets. 7.5% is the nominal rate 3% is the expected inflation rate 4.5% is the real rate 4.5% represents compensation for postponing consumption All of the above Question 4 10 pts If the U.S. banks become much more restrictive relative to non-price conditions, market participants should expect the curve for loanable funds to shift and rates to as a result. Demand: Down and to the left; decrease Supply; Up and to the left; decrease Demand; Up and to the right increase Supply: Down and to the right; decrease None of the above

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