Question
Between the end of 2010 and the end of 2011, the nominal interest rate increased from 6% to 7%, the CPI increased from 130.0 to
Between the end of 2010 and the end of 2011, the nominal interest rate increased from 6% to 7%, the CPI increased from 130.0 to 132.8.
1) What was the the real interest rate in 2011?
2) Was the real interest higher in 2010 or 2011? Explain.
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International Business
Authors: Alan M. Rugman, Simon Collinson
6th edition
273760971, 978-0273760979
