What interest rate charge to not lose because of inflation
Suppose you are lending $1000 to your friend. You want to get a return of 3% but your economist informs you that inflation is expected to be 2%. What interest rate would you charge to make sure that you do not lose because of inflation?
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Assume you are lending $1000 to your friend. You want to get return of 3% but economist informs you that inflation is expected to be 2%.
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