11 The annual inflation rate is expected to be 5 percent over the next 3...

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11 The annual inflation rate is expected to be 5 percent over the next 3 years Juan plans to take out a 3 year loan to purchase an automobile If Juan decides not to take out the loan if the real interest rate exceeds 3 percent the highest nominal interest rate be is willing to pay is A 2 percent B 3 percent C 8 percent D 15 percent E 25 percent

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11 The annual inflation rate is expected to be 5 percent over the next 3 years Juan plans to take out a 3 year loan to purchase an automobile If Juan decides not to take out the loan if the real interest rate exceeds 3 percent the highest nominal interest rate be is willing to pay is A 2 percent B 3 percent C 8 percent D 15 percent E 25 percent

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