Given the information below, estimate the real rate with the approximation nominal interest rate equation and the
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Given the information below, estimate the real rate with the approximation nominal interest rate equation and the true nominal interest rate equation (Fisher effect).
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Approximate Real Rate Nominal Rate Inflation Rate True Real Rate 5% 13% 8% 2% 21% 14% 4% 7%
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Nominal Rate Inflation Rate Approximate Real Rate True Real Rate 13 5 8 762 8 2 6 588 2...View the full answer
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