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Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest. If the

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Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest. If the inflation rate was 7%, what was the real interest rate you paid? Select one: a. 10 percent b. 3 percent c. 7 percent d. 17 percent

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