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Financial Markets: Follow the Instructions Below. FINANCIAL MARKETS: Present the formula, show your solution, and highlight your answers. Question 1 Suppose the real interest rate

Financial Markets: Follow the Instructions Below.

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FINANCIAL MARKETS: Present the formula, show your solution, and highlight your answers. Question 1 Suppose the real interest rate is 6 percent and the expected inflation is 2 percent. What would you expect the nominal rate of interest to be? Present the formula, show your solution and highlight your answer's. Question 2 Suppose that Treasury bills are currently paying 9 percent and the expected inflation is 3 percent. What is the real interest rate? Present the formula, show your solution and highlight your answer's

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