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6. Inflation is forecast to be at an annual rate of 3% for the next year. a. If an account earns an effective rate of

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6. Inflation is forecast to be at an annual rate of 3% for the next year. a. If an account earns an effective rate of 4%, what will the real rate of interest be if this forecast holds true? b. What will the real rate of interest be if the actual rate of inflation is twice the forecast? What does this mean in practical terms

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