Question: Given the information below estimate the inflation rate with the approximation formula and the true inflation with the Fisher Effectformula. Approximate Nominal Rate Real Rate
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Approximate Nominal Rate Real Rate 5% 2% 14% 1.25% Inflation True Inflation 11% 2100 5.5%
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Nominal Rate Real Rate Approximate Inflation True Inflation 11 5 6 571 8 2 6 588 21 14 7 ... View full answer
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