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line in the graph shows the expected rate of inflation (x ) for years 1 to 5. 10- question has 3 steps. In the table
line in the graph shows the expected rate of inflation (x ) for years 1 to 5. 10- question has 3 steps. In the table below, calculate the nominal rate of interest required for each year to maintain a real rate of interest of 2% Year Nominal Interest Rate Percent A W N un . Using the 4-point curved line drawing tool, draw the nominal rate curve for the first four years you calculated in the table above. Label the curve 'Nominal rate'. Note: If you are not prompted for a label, then you have used the wrong drawing tool. c. If expectations about future inflation in year 5 were to increase by 2% to 4%, what would be the nominal rate of interest Year charged in year 5 to maintain a real interest rate of 2%? O A. 2 O B. 6 O C. -2 OD. 4 Click the graph, choose a tool in the palette and follow the instructions to create your graph
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