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The Iron Bank wants to make sure that the purchasing power of the interest that they get paid on loans is at least [11%]. Real
The Iron Bank wants to make sure that the purchasing power of the interest that they get paid on loans is at least \[11\%\]. Real GDP is increasing at \[5\%\] per year, and the expected rate of inflation is \[7\%\] per year. If all banks in Westeros want to earn the same real return as the Iron Bank, what is the nominal interest rate (n.i.r) in Westeros? Choose 1 answer: Choose 1 answer: (Choice A) \[13\%\] A \[13\%\] (Choice B) \[-1\%\] B \[-1\%\] (Choice C) \[7\%\] C \[7\%\] (Choice D) \[18\%\] D \[18\%\] (Choice E) \[11\%\] E \[11\%\]
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