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The two-year interest rate is 11.4% and the expected annual inflation rate is 5.7%. a. What is the expected real interest rate? ( Do not

The two-year interest rate is 11.4% and the expected annual inflation rate is 5.7%.

a.

What is the expected real interest rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expected real interest rate %

b-1.

If the expected rate of inflation suddenly rises to 7.7%, what does Fisher

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