A bank quoted you an interest rate of 7% p.a. If inflation is 3% per year,...

 

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A bank quoted you an interest rate of 7% p.a. If inflation is 3% per year, you will be able to buy putting your money in the bank. % more goods next year by A bank quoted you an interest rate of 7% p.a. If inflation is 3% per year, you will be able to buy putting your money in the bank. % more goods next year by

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To calculate the real interest rate we need to adjust the nominal interest rate 7 for inflatio... View the full answer