5. During inflationary times, the money rate of interest incorporates an inflationary premium reflecting the expected future
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5. During inflationary times, the money rate of interest incorporates an inflationary premium reflecting the expected future decline in the purchasing power of the monetary unit. Under these circumstances, the money rate of interest exceeds the real rate of interest.
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Related Book For 
Economics Private And Public Choice
ISBN: 9780123110404
2nd Edition
Authors: James D Gwartney; Richard Stroup; A H Studenmund
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