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Suppose the pure rate of interest is 1.65 percent, the expected rate of inflation is 3.15 percent, and the risk premium is 7.45 percent. What

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Suppose the pure rate of interest is 1.65 percent, the expected rate of inflation is 3.15 percent, and the risk premium is 7.45 percent. What is the real rate of interest? Select one: a. 5.14 percent b. 9.22 percent c. 6.40 percent d. 4.85 percent e. 8.45 percent

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