QUESTION

Text
Image


With no inflation, a bank would be willing to lend a business firm $\$ 5$ million at an annual interest rate of $2 \%$. But if the rate of inflation was expected to be $4 \%$, the bank would most likely charge the firm an annual interest rate of $6 \%$ $4 \%$ $2 \%$ $10 \%$

Public Answer

SHAUGN The First Answerer