Question: Using the exact and the approximate formulae, what is the market rate of interest when: (a) the real rate of interest is 2 percent and

Using the exact and the approximate formulae, what is the market rate of interest when:

(a) the real rate of interest is 2 percent and the inflation rate is 3 percent?

(b) the real rate is 2 percent and the inflation rate is 14 percent?

(c) the real rate is 10 percent and the inflation rate is 3 percent?

(d) the real rate is 3 percent and the inflation rates is 6 percent?

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