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What will happen to the real rate when the inflation rate increases or decreases by 1%. For the changes in inflation (flowing through to changes
What will happen to the real rate when the inflation rate increases or decreases by 1%.
For the changes in inflation (flowing through to changes in the nominal rate and real rate) which is slightly inconsistent with the notion of the nominal rate changing by 1% that we normally think about (which is different from inflation changing by 1%).
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