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The Republic of Northern Lights, a small, stable country in the North Atlantic, is experiencing a negative inflation rate at this time. The annual inflation
The Republic of Northern Lights, a small, stable country in the North Atlantic, is experiencing a negative inflation rate at this time. The annual inflation rate is 4%. The nominal rate of interest is 8.5%. Using the approximate nominal interest rate equation, what is the real interest rate that the Nothern Lightians are getting as a reward for waiting? Using the true nominal interest rate equation, what is the real interest rate that the Nothern Lightians are getting as a reward for waiting
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