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Suppose an economy has a real interest rate of 3% and an inflation rate of 5%. What's the exact nominal interest rate, and what's the
Suppose an economy has a real interest rate of 3% and an inflation rate of 5%. What's the exact nominal interest rate, and what's the approximate value of it? Multiple Choice exact: 8%; approximate: 8.15% exact: 8.15%, approximation: 8% exact: 8.15%; approximate: 8.15% exact: 8%, approximate: 8%
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