If your nominal income rose by 6.30 percent and the price level rose by 3.30 percent in some year. by what approximate percentage would your real income increase? Instruction: Round your answer to one decimal place. % If your nominal income rose by 3.80 percent and your real income rose by 1.20 percent in some year, what must have been the approximate rate of ination? Instruction: Round your answers to one decimal place. % 9 Suppose that the nominal interest rate is 6 percent and the inflation premium is 2 percent. What is the real interest rate? % 04:52:33 Alternatively, assume that the real interest rate is 4 percent and the nominal interest rate is 8 percent. What is the inflation premium? %Suppose the inflation premium is 3.50 percent and the nominal interest rate is 1.75 percent. 10 Instructions: In part a and b, round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the real interest rate? 8 04:52:26 b. What if the inflation premium is 4.50 percent while the nominal interest rate is 0.90 percent