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The nominal rate of interest is 8% and the real rate of interest is 4%. What is the expected inflation rate? a) 3.85% b) 4%

The nominal rate of interest is 8% and the real rate of interest is 4%. What is the expected inflation rate?

a) 3.85%

b) 4%

c) 3.88%

d) 2.94%

e) 2.91%

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