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With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6%. But, if the rate of inflation was anticipated to be 4%, the bank would most likely charge the firm an annual interest rate of:A. 2 percentB. 4 percentC. 6 percentD. 10 percent

Respuesta :

Answer:

10%

Explanation:

Interest rate when there's no inflation is known as real interest rate.

Nominal interest is the interest rate taking into account anticipated inflation.

Nominal interest rate = real interest rate + anticipated inflation rate

6% + 4% = 10%

I hope my answer helps you

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