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Chapter 4 4 4. The 1-year real rate of interest is currently estimated U be 4 percent. The current annual rate of inflation is 6

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4. The 1-year real rate of interest is currently estimated U be 4 percent. The current annual rate of inflation is 6 per- cent, and market forecasts predict the annual rate of inflation to be 8 percent. What is the current 1-year nominal r of interest

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