Suppose sally borrows $1,000 from harry for one year and agrees to pay a nominal interest rate of 11%. when she borrows the money, both she and harry expect an inflation rate of 3%. 1st attempt part 1 (1 point)see hint the expected real interest rate on the loan is %. part 2 (1 point)see hint suppose that when sally pays back the loan after one year, the actual inflation rate turns out to be 8%. the actual real interest rate on the loan is %. part 3 (2 points)see hint a. if the inflation rate turned out to be higher than expected, then . b. but if inflation turned out to be lower than expected, then .

hi noah!

the first time you break a rule, you get a warning.

if you continue to break rules you get kicked out for a certain amount of time.

so, to answer your question 1.

hope this buddy!

- courtney

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.