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You want to open a business. You calculate that your new business will yield a real rate of return of 3 percent. To get your

You want to open a business. You calculate that your new business will yield a real rate of return of 3 percent. To get your business started, you need a start-up loan. The current nominal interest rate is 5 percent. Is it worth your while to get a loan to open your business? Explain.

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