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You borrow money from a bank for 1 year at an interest rate of 6%. During this year the bank of Canada is worried about

You borrow money from a bank for 1 year at an interest rate of 6%. During this year the bank of Canada is worried about deflation. At the end of the year you calculate that your real rate of return was 5.2%. What was the inflation or deflation rate during the year that loan was outstanding ?

1) deflation of .8%

2) inflation of .8%

3) deflation of-.8%

4)inflation of -.8%

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