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7. Interest rates: The Fisher equation relates real (R) and nominal (i) interest rates to the rate of inflation ( It ). Given two of
7. Interest rates: The Fisher equation relates real (R) and nominal (i) interest rates to the rate of inflation ( It ). Given two of these values below, calculate the third. (a) R = 1%, I = 3%. What is i? (b) = 5%, i= 6%. What is R? (c) R = 2%, i = 6%. What is It? (d) R = 1%, I = 12%. What is i? (e) = 6%, i = 2%. What is R? (f) R = 1%, i = 10%. What is It
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