To maintain this real interest rate, how must the nominal interest rate change if the inflation rate

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To maintain this real interest rate, how must the nominal interest rate change if the inflation rate falls to 4.5 percent a year?


Brazil keeps interest rates on hold Brazil’s inflation rate climbed to 10.7 percent at the end of 2015 and the country’s Monetary Policy Committee kept its benchmark interest rate at 14.25 percent.

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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