1.10 In recent years, economists have argued about what the true value of the real interest rate...

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1.10 In recent years, economists have argued about what the true value of the real interest rate is at any one time and over time. Given that the Nominal interest rate 

Real interest rate  Expected inflation rate, it follows that the Real interest rate  Nominal interest rate –

Expected inflation rate. Why do you think there is so much disagreement over the true value of the real interest rate?

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Economics

ISBN: 978-0324538014

8th Edition

Authors: Roger A Arnold

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