Econ question-interest rate!!urgent!!!?

2014-04-14 7:11 am
A is willing to lend $100 to B.The interest rate is 5%.The term of loan will be one year.Suppose both parties expect the general price level to raise by 10% over the period.

1)What is the interest rate that both parties would be willing to continue with the transaction?
What is the real interest rate?

2)Under what circumstances will A gain at the expense of B?

3)What are the real costs of inflation?

回答 (1)

2014-04-14 7:26 am
Do your own homework, best advice I can give you :-)


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