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Please find the approximate real rate and the true real rate to the problems. Inflation, nominal interest rates, and real rates. Given the following information,
Please find the approximate real rate and the true real rate to the problems.
Inflation, nominal interest rates, and real rates. Given the following information, P., estimate the real rate with the approximate nominal interest rate equation and the true nominal interest rate equation (Fisher effect) for each set of nominal and inflation rates. Data Table First, fill in the approximate real interest rate in the following table: (Round to two decimal places.) Approximate Nominal Rate Inflation Rate Real Rate 11.0% 6.5% % (Click on the following icon in order to copy its contents into a spreadsheet.) Approximate Real Rate ? Nominal Rate 11.0% 9.0% 21.0% 3.0% Inflation Rate 6.5% 2.0% 14.0% 10.0% True Real Rate ? ? ? ? ? ? ? Print DoneStep by Step Solution
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