In recent years, economists have argued about the true value of the real interest rate at any

Question:

In recent years, economists have argued about the true value of the real interest rate at any one time and over time.

Given that the Nominal interest rate  Real interest rate 

Expected inflation rate, then 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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9780324785500

9th Edition

Authors: Roger A. Arnold

Question Posted: