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Assume you are a lender. You estimate inflation for 2020 to be 6%. You charged a nominal interest rate of 8%. If actual inflation was
Assume you are a lender. You estimate inflation for 2020 to be 6%. You charged a nominal interest rate of 8%. If actual inflation was two times larger than what you estimated, calculate the real interest rate you earned on that loan. Group of answer choices Borrower won because s/he paid higher real interest than agreed Borrower lost because s/he paid higher nominal interest than agreed None of these answers is correct You (lender) won because you earned higher nominal interest than agreed You (lender) lost because you earned a negative real return
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