1.

flation, nominal interest rates, and real

rates.

Given the following information,

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, estimate the real rate with the approximate nominal interest rate equation and the true nominal interest rate equation (Fisher effect) for each set of nominal and inflation rates.

First, fill in the approximate real interest rate in the following table: (Round to two decimal places.)

Nominal Rate		Inflation Rate		Approximate Real Rate
15.0%		7.0%		nothing%