Question: 1. please help 2. 3. What do we get when we deduct the expected inflation rate from the nominal interest rate? The adjusted exchange rate

1. please help

rate The real rate The T-bill rate The prime rate The following

What do we get when we deduct the expected inflation rate from the nominal interest rate? The adjusted exchange rate The real rate The T-bill rate The prime rate The following information is obtained from First National Bank of Lawrenceville: One-year interest rate on certificate of deposit = 4% Expected inflation rate = 2.5% Based on the above information and using the approximate formula, calculate the real interest rate. O 2.5% O 1.5% 4% 6.5% S4=$} = {AUD NZD (S. and S, are set up as NZD AUD S2 Which of the following statements about the equation, described above, is correct? It's the formula for the calculation of inflation differential between two countries O It is the approximate formula for the international Fisher effect It's the formula for the calculation of over- or under-valuation in the BigMac Index calculation O It's the approximate formula for the Fisher effect

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