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If inflation is anticipated to be 4.5 percent during the next year, while the real rate of interest for a one-year loan is 3 percent,

image text in transcribed If inflation is anticipated to be 4.5 percent during the next year, while the real rate of interest for a one-year loan is 3 percent, then approximately what should the nominal rate of interest be for a risk-free one-year loan? -1.5 percent. 6.5 percent 7.5 percent. None of these answers are correct 1.5 percent

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