Question: Given the information below, estimate the real rate with the approximation nominal interest rate equation and the true nominal interest rate equation (Fisher effect). Approximate

Given the information below, estimate the real rate with the approximation nominal interest rate equation and the true nominal interest rate equation (Fisher effect).

Approximate Real Rate Nominal Rate Inflation Rate True Real Rate 5% 13% 8% 2% 21% 14% 4% 7%

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Nominal Rate Inflation Rate Approximate Real Rate True Real Rate 13 5 8 762 8 2 6 588 2... View full answer

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