If inflation during the last 12 months was 2% and the interest rate during that period was
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If inflation during the last 12 months was 2% and the interest rate during that period was 5%, what was the real rate of interest? If inflation is expected to average 4% during the next year and the real rate is 3%, what should the current interest rate be?
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To calculate the real rate of interest we subtract the inflation rate from t...View the full answer
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Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Question Posted:
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