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Suppose you make a loan of $100 that will be repaid to you in 1 year. If the loan is denominated in terms of a

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Suppose you make a loan of $100 that will be repaid to you in 1 year. If the loan is denominated in terms of a nominal interest rate, are you happy or sad if ination is higher than expected during the year? What if the loan instead had been denominated in terms of real return. Watch alternate measures of GDP video

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