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If inflation is anticipated to be 5 percent during the next year, while the real rate of interest for a one - year loan is

If inflation is anticipated to be 5 percent during the next year, while the real rate of interest for a one-year loan is 1.5 percent, then approximately what should the nominal rate of interest be for a risk-free one-year loan?
6.5 percent
3.5 percent
-3.5 percent
none of these answers are correct
7.5 percent
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