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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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