Assume that the real rate of interest is 2.82 percent and the anticipated percentage change in price

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Assume that the real rate of interest is 2.82 percent and the anticipated percentage change in price levels over the life of the loan contract is 9.57 percent. What is the nominal interest rate for the contract?

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Macroeconomics

ISBN: 9780134897899

8th Edition

Authors: Olivier Jean Blanchard

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Posted Date: Apr 22, 2024 05:33 AM

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Assume that the real rate of interest is 2.82 percent and the anticipated percentage change in price

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Answer So the nominal interest rate for the loan contract is 1254 To find the nominal interest r... View the full answer

Macroeconomics

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