Tamika is lending Juan $1,000 for one year. The CPI is 1.60 at the time the loan is made, and they both expect it to be 1.68 in one year. If Tamika and Juan agree that Tamika should earn a 3 percent real return for the year, the nominal interest rate on this loan should be percent.
the nominal interest rate on this loan should be Juan agree that Tamika should earn a 3 percent real return for the year, Ioan is made, and they both expect it to be 1.68 in one year. If Tamika and Tamika is lending Juan $1,000 for one year. The CPI is 1.60 at the time the -percent.