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If Raheem is applying for a loan, which will give him the better deal: loan 1, a $1,000 loan at 5.6% real interest rate with
If Raheem is applying for a loan, which will give him the better deal: loan 1, a $1,000 loan at 5.6% real interest rate with 2.1% inflation, or loan 2, a $1,000 loan at 4.2% nominal interest rate with 1.1% inflation? Both loans are equal. Loan 2 Neither loan is a good deal. Loan 1
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Economics
Authors: John Sloman, Alison Wride
7th edition
978-027372130, 273721305, 978-0273721307
