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Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 8.00%. When she borrows the money, both

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Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 8.00%. When she borrows the money, both she and Harry expect an inflation rate of 6.00%. 2nd attempt Part 1 (1 point) The expected real interest rate on the loan is Part 2 (1 point) Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 1.00%. The actual real interest rate on the loan is % Suppose that when Sally pavs back the loan after one year, the actual inflation rate turns out to be 1.00%. The actual real interest rate on the loan is %. Part 3 (2 points) a. If the inflation rate turned out to be higher than expected, then b. But if inflation turned out to be lower than expected, then

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