Question
Consider the following situation at the start of the year, a one-year bill is priced at $920. Economists forecasted that the inflation rate for the
Consider the following situation at the start of the year, a
one-year bill is priced at $920.
Economists forecasted that the inflation rate for the year will be 5% but the actual inflation
rate is at 6.5%. Caleulate the nominal interest rate and the real interest rate
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Macroeconomics
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
1st Edition
978-0132109994, 0132109999
