In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States.

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In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States. What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:23 AM

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In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States.

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In 1975 interest rates were 785 and the rate of inflation was 123 in the United States Wha...View the full answer

Fundamentals of Corporate Finance

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