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QUESTION 12 Suppose that in Economy A 10% of borrowers default, and the interest rate on lending is 2%. What is the interest rate on

QUESTION 12 Suppose that in Economy A 10% of borrowers default, and the interest rate on lending is 2%. What is the interest rate on borrowing? Report up to 3 decimals. If your answer is 12.134%, report 0. 123

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