Plot the annual inflation rate as measured by the annual growth rate of the implicit GDP deflator

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Plot the annual inflation rate as measured by the annual growth rate of the implicit GDP deflator and lending interest rate for any one country from 1960 to the present. What is the relationship between the inflation rate and the nominal interest rate? Is it consistent with the prediction of macroeconomic theory? Explain. Calculate the real interest rate and plot it over time. Do you find any negative real interest rate?

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Macroeconomics

ISBN: 9781292215792

6th Global Edition

Authors: Stephen Williamson

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