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If inflation is anticipated to be 2 . 5 percent during the next year, while the nominal interest rate is 6 . 2 5 percent,

If inflation is anticipated to be 2.5 percent during the next year, while the nominal interest rate is 6.25 percent, then we can infer that the real interest rate on a one-year loan is approximately?
4.25 percent.
8.75 percent.
3.75 percent.
5.0 percent.
none of these
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