Question
I've used the Fisher Equation: i = r + Pr. I got 20%: 28 = 8 + Pr. Correct answer is 36%. Please explain. If
I've used the Fisher Equation: i = r + Pr. I got 20%: 28 = 8 + Pr. Correct answer is 36%. Please explain.
If the real rate of interest is 8% and the nominal rate of interest is 28%, then the rate of inflation must be about
a. 36%.
b. 24.26%.
c. 3.50%.
d. 18.52%.
e. 23%.
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
