Question: 3 Interest Rates 3.1 Write down the interest rate equation. Explain what each component is and why 3.2 In lecture, I said for small values

3 Interest Rates 3.1 Write down the interest rate equation. Explain what each component is and why 3.2 In lecture, I said for small values of r, In(1 +r)r. Take the natural log of 3.3 Suppose the nominal interest rate became negative. What do you suppose those it is included. both sides to obtain an approximation of the interest rate equation. who were lenders would do in response to this change

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