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Q1. Nominal interest rate is equal 3 % p.a. and real interest rate is equal 2,7 % p.a. Calculate the value of rate of inflation.

Q1. Nominal interest rate is equal 3 % p.a. and real interest rate is equal 2,7 % p.a. Calculate the value of rate of inflation. Use

  1. a)Fischer equation (simplified relationship);
  2. b)exact relationship.

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