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You borrow to fund part of your education at an interest rate of 4%. If the bank expected inflation to average 2% per year, it
You borrow to fund part of your education at an interest rate of 4%. If the bank expected inflation to average 2% per year, it was expecting a real return of _____%. If inflation in fact averages 6% per year, the interest rate, in real terms, is _____%. This shows that _____ gain when there is _____ inflation
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