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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 3.5%. The nominal rate of interest is 5%. Using the approximate nominal interest rate, what is the real interest rate that the Northern Lightians are getting as a reward? Using the true nominal interest rate, what is the real interest rate that the Northern Lightians are getting as a reward
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