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Suppose the money market annual yield (interest rate) is 1.50%. In the meantime, the one-year inflation rate based on Consumer Price Index (CPI) was 2.0%.
Suppose the money market annual yield (interest rate) is 1.50%. In the meantime, the one-year inflation rate based on Consumer Price Index (CPI) was 2.0%. If the expected inflation rate remains the same for the next year, what is the expected real interest rate for the money market investment?
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