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4. Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2 percent. Instructions: Enter your answers as whole numbers.

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4. Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2 percent. Instructions: Enter your answers as whole numbers. a. What is the real interest rate? Alternatively, assume that the real interest rate is 1 percent and the nominal interest rate is 6 percent. b. What is the inflation premium

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