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You invest $100 in an interest-bearing bank account for 1 year. Suppose that the price of apples today is $2 per unit. If the nominal
- You invest $100 in an interest-bearing bank account for 1 year. Suppose that the price of apples today is $2 per unit. If the nominal interest in the bank account is 2% and the price of apples a year from now is $2.5, what is the real interest rate from your one-year investment? Explain with words what a real interest rate is.
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Technical Change, Relative Prices, And Environmental Resource Evaluation
Authors: V Kerry Smith
1st Edition
1317358570, 9781317358572
