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The interest rate is 5 percent, the expected inflation rate is 2%, and the actual inflation rate is 4%. a) Calculate the ex ante real

The interest rate is 5 percent, the expected inflation rate is 2%, and the actual inflation rate is 4%.

a) Calculate the ex ante real interest rate using both the exact relationship and the approximation formula.

b) Calculate the ex post real interest rate using both the exact relationship and the approximation formula

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