Business, 25.11.2021 14:00 michellectucker1982

James took out a fixed-interest-rate loan when the CPI was 200. He expected the CPI to increase to 206 but it actually increased to 204. The real interest rate he paid is: a. higher than he had expected, and the real value of the loan is higher than he had expected.
b. higher than he had expected, and the real value of the loan is lower than he had expected.
c. lower then he had expected, and the real value of the loan is lower than he had expected.
d. lower than he had expected, and the real value of the loan is higher than he had expected.

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James took out a fixed-interest-rate loan when the CPI was 200. He expected the CPI to increase to 2...

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