Question: 5. The current nominal interest rate is 4.0%, and the inflation rate is 9.0%. A. What is the real rate of return? B. In order

5. The current nominal interest rate is 4.0%, and the inflation rate is 9.0%.

A. What is the real rate of return?

B. In order to earn a real rate of return of 3.0%, what should the nominal interest rate be?

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