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e. Assume the world real interest rate is * = 3.5 % per year. Your country has a long run average inflation rate of it
e. Assume the world real interest rate is * = 3.5 % per year. Your country has a long run average inflation rate of it = 2.0 %. What will be the average nominal interest rate (i) in your country? (Write down the equation you use.)
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