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You borrow $1,500 and sign a contract that you will pay 1.6% interest rate. The inflation rate over the year ends up at 5.8%. This
You borrow $1,500 and sign a contract that you will pay 1.6% interest rate. The inflation rate over the year ends up at 5.8%. This means that you real interest rate ends up being:
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
