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The Fisher Equation is very important in helping us understand the relationship between the Nominal Rate, the Real Rate and the Expected Inflation Rate. If

The Fisher Equation is very important in helping us understand the relationship between the Nominal Rate, the Real Rate and the Expected Inflation Rate. If the current Nominal Rate is 6% and the Expected Inflation Rate is 2%, the Real Rate (computed using the Approximation) must be?

If you were to use the Exact formula to solve for the Real Rate in the question , what would it be?

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