What determines the real rate of interest? How does it respond to changes in inflationary expectations?

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Principles of Money Banking and Financial Markets

ISBN: 978-0321339195

12th edition

Authors: Lawrence S. Ritter, William L. Silber, Gregory F. Udell

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Question Posted: Mar 06, 2018 09:30 AM

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What determines the real rate of interest? How does it respond to changes in inflationary expectations?

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It is determined by the equality of saving and inv...View the full answer

Principles of Money Banking and Financial Markets

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