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You are given the following information about the economy: the nominal interest rate = 8 percent, and the real rate of interest = 4 percent.
You are given the following information about the economy: the nominal interest rate = 8 percent, and the real rate of interest = 4 percent. The inflation premium is
Multiple Choice
- 4 percent.
- 12 percent.
- 8 percent.
- 2 percent.
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