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Nominal and Real Interest Rate Practice Helpful Formulas: Nominal Interest Rate= Real Interest Rate + Expected Inflation Real Interest Rate = Nominal Interest Rate -

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Nominal and Real Interest Rate Practice Helpful Formulas: Nominal Interest Rate= Real Interest Rate + Expected Inflation Real Interest Rate = Nominal Interest Rate - Expected Inflation Fill in the blanks in the table using the formulas from above. Nominal Interest Rate Expected Inflation Rate Real Interest Rate 10% 8% 2% 8% 12% - 4% 12% 7% 7% 10% 5% 7% 6% - 2%

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