Question
Assume the monetary policy curve is given by r = 1.75 +0.25. Calculate the real interest rate when the inflation rate is 3%, 4%,
Assume the monetary policy curve is given by r = 1.75 +0.25. Calculate the real interest rate when the inflation rate is 3%, 4%, and 5%. (Round your responses to two decimal places.) When the inflation rate is 3%, the interest rate is When the inflation rate is 4%, the interest rate is When the inflation rate is 5%, the interest rate is %. %. %.
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Macroeconomics
Authors: Robert J Gordon
12th edition
138014914, 978-0138014919
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