Compute the real interest rate using the exact formula and the approximation formula for each set of

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Compute the real interest rate using the exact formula and the approximation formula for each set of assumptions listed in

(a) through (c).

a. \(i=4 \% ; \quad \pi^{e}=2 \%\)

b. \(i=15 \% ; \quad \pi^{e}=11 \%\)

c. \(i=54 \% ; \quad \pi^{e}=46 \%\)

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Macroeconomics

ISBN: 9780133780581

7th Edition

Authors: Olivier Jean Blanchard

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