Business, 03.12.2019 03:31 theyylovejay

Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. suppose the average rate paid by banks on savings accounts is 0.65% at a time when inflation is around 1.45%.
for the average saver, the real rate of interest on his or her savings is -0 80 %. if banks expect that the rate of inflation in the coming year will be 445% and they want a real return of 6% on a certain category of loans, then the nominal rate they should charge borrowers on those loans is %

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