ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question

jane wants to borrow $100 from jack. jack wants to make 5% real return on his money, so they both agree on a 5% interest rate paid next year. both dont anticipate the 3% inflation next year. in this case,

a. jane will pay $8 a year from now on

b. jack will receive more than 5% of real rate of return a year from now. 

c. jane is better off

d. jack is better off 

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