According to the fisher equation

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According to the Fisher equation, if a bank extends a loan for 3% and the inflation rate ends up being 5%:

a. the nominal interest rate is 8%.

b. the real interest rate is 2%.

c. the nominal interest rate is 2%.

d. the real interest rate is 2%.

e. the nominal interest rate is 2%

Reference no: EM13834792

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