The CPI is 120 in year 1 and 150 in year 2. All inflation is anticipated. If

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The CPI is 120 in year 1 and 150 in year 2. All inflation is anticipated. If the Gringotts Bank charges an interest rate of 30 percent in year 2, what is the bank’s real interest rate?

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Principles of Macroeconomics

ISBN: 978-0134078809

12th edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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Question Posted: Dec 27, 2018 06:38 AM

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The CPI is 120 in year 1 and 150 in year 2. All inflation is anticipated. If

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The real interest rate is 5 percent The in...View the full answer

Principles of Macroeconomics

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