Question
An investor requires a 4 percent increase in purchasing power in order to induce her to lend. She expects inflation to be 2 percent next
An investor requires a 4 percent increase in purchasing power in order to induce her to lend. She expects inflation to be 2 percent next year. The nominal rate she must charge is about
| A. | 4 percent | |
| B. | 2 percent | |
| C. | 6 percent | |
| D. | 7 percent |
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Financial Accounting
Authors: David Spiceland, Wayne Thomas, Don Herrmann
4th edition
1259307956, 978-1259307959
