What does the real interest rate equal, given the following: (a) Nominal interest rate = 8 percent;
Question:
(a) Nominal interest rate = 8 percent; expected inflation rate = 2 percent;
(b) Nominal interest rate = 4 percent; expected inflation rate = -4 percent;
(c) Nominal interest rate = 4 percent; expected inflation rate = 1 percent.
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