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1. Suppose the price of tea risesrelativeto the price of coffee? Can we conclude thatinflationhas occurred? Discuss and offer examples. 2. Thenominal rateof interest is

1. Suppose the price of tea risesrelativeto the price of coffee? Can we conclude thatinflationhas occurred? Discuss and offer examples.

2. Thenominal rateof interest is the same as thereal rate of interest? If true, discuss? If false, discuss.

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