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suppose lender larry values $ 1 today equal to $ 2 a month from now, and borrower barry vlaues $ 1 today equal to $

suppose lender larry values $

1

today equal to $

2

a month from now, and borrower barry vlaues $

1

today equal to $

10

a month from now. additionally, larry and barry both expect there to be

20 %

inflation. what is the minimum and maxium the nominal interest rate they agree to can be

?

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