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What is the nominal interest rate you get

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Suppose you have VND 100 million to save or spend. If you lend, you will receive 112 million after a year. Inflation is 14% / year.

a. What is the nominal interest rate you get?

b. What is the real interest rate?

c. Should you save or spend that money?

d. Question (c) how will be answered if inflation is 10% / year, nominal interest rates do not change?

Reference no: EM132545855

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