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Parker Bros. Bank expects the inflation rate to be 1.00%. (i) What nominal interest rate should the bank charge to achieve a real return of

Parker Bros. Bank expects the inflation rate to be 1.00%. (i) What nominal interest rate should the bank charge to achieve a real return of 4.00%? (ii) It turns out ex post that inflation is 6.00%. In retrospect, what is the bank's real return assuming they had set their nominal interest as per your answer to part (i)

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