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Hi, could I get some help with the following question? For the following two cases, use the equation for the real interest rate to give
Hi, could I get some help with the following question?
For the following two cases, use the equation for the real interest rate to give an example for each case using numbers for real interest rate, nominal interest rate, and inflation. Explain each number you select.
Case 1: A situation where it is a real cost if you borrow money.
Case 2: A situation where it is a real gain if you borrow money.
Thank you in advance.
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