Solved: What interest rate would you charge, Microeconomics

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What interest rate would you charge

Problem

Suppose you are lending $1000 to your friend. You want to get a return of 3% but your economist informs you that inflation is expected to be 2%. What interest rate would you charge to make sure that you do not lose because of inflation?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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