6. Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2...

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6. Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2 percent. What is the real interest rate? Alternatively, assume that the real interest rate is 1 percent and the nominal interest rate is 6 percent.

What is the inflation premium? LO3

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Essentials Of Economics

ISBN: 9780077502140

3rd Edition

Authors: Stanley Brue, Campbell McConnell, Sean Flynn

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