Bill lends Joann $1,000 for a year at a nominal interest rate of 6%. If both Bill and Joann expect the inflation rate to be 3% next year, then the real rate of interest is Part 2 A. 9%. B. 3%. C. 18%. D. negative 3%.

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Bill lends Joann $1,000 for a year at a nominal  interest rate of 6%. If both Bill and Joann expect the inflation rate to be 3% next year, then the real rate of interest is Part 2 A. 9%. B. 3%. C. 18%. D. negative 3%.

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