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27 The nominal interest rate is 4%, with 1.04% expected inflation. If next year's nominal rate climbs by 78 basis points and inflation stabilizes at

27 The nominal interest rate is 4%, with 1.04% expected inflation. If next year's nominal rate climbs by 78 basis points and inflation stabilizes at 0.72%, calculate the expected shift in real interest rates. The expected increase in real rate is % (The answer should be rounded to TwO (2) decimals without the % sign.) Add your

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