Question: 10. What is the difference between the nominal interest rate and real interest rate? What is the logic behind the implied positive relationship between expected

10. What is the difference between the nominal interest rate and real interest rate? What is the logic behind the implied positive relationship between expected inflation and nominal interest rates?

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What is the difference between the nominal interest rate and real interest rate? What is the logic behind the implied positive relationship between expected inflation and nominal interest rates?

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