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Assume that in 1974, interest rates were 6.771% and the rate of inflation was 13.479%. What was the real interest rate in 1974? How would
Assume that in 1974, interest rates were 6.771% and the rate of inflation was 13.479%. What was the real interest rate in 1974? How would the purchasing power of your savings have changed over the year? The real rate of interest in 1974 was nothing%, which means that the purchasing power of your savings would have (increases or decreased) by nothing%. (Round to three decimal places.)
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