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) In Macro Environment E1, we looked at Consumer Price Index (CPI) as a measure of inflation. In our analysis, we found that using smoothed
) In Macro Environment E1, we looked at Consumer Price Index (CPI) as a measure of inflation. In our analysis, we found that using smoothed CPI provided better results in estimating future interest rates. Discuss one advantage and one disadvantage in using smoothed CPI to forecast interest rates.
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