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2. Consider the model of three-period lived individuals. Suppose that the two-period real rate of return on capital is X = 1.44, the rate of

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2. Consider the model of three-period lived individuals. Suppose that the two-period real rate of return on capital is X = 1.44, the rate of population growth is n = 1.1, and the rate of fiat money creation is z = 1.2. Find the following net rate for both one and two periods: a) The real rate of inflation. (5%) (b) The real rate of return on fiat money. (5%)

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