2. ' Consider a single good economy. Let Po and P1 be the nominal price of the good at period 0 and 1 each. On
2. ' Consider a single good economy. Let Po and P1 be the nominal price of the good at period 0 and 1 each. On the other hand, in the bond market, a right to receive $1 at period 1 is sold at $Q currently (at period 0). Using this information, represent the nominal interest rate as a sum of the real interest rate and the ination rate
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