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Please, solve this problem 2. Inflation and the Incentive to Save Low inflation country High inflation country Real interest rate 5% 5% Inflation rate 3%

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2. Inflation and the Incentive to Save Low inflation country High inflation country Real interest rate 5% 5% Inflation rate 3% 11% Nominal interest rate Reduced interest due to a 25% tax After-tax nominal interest rate After-tax real interest rate (a) To see how inflation affects the incentive to save, complete the given above table for both the low inflation country and the high inflation country

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