Assume the monetary policy curve is given by r = 1.75 +0.25. Calculate the real interest...

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Assume the monetary policy curve is given by r = 1.75 +0.25π. Calculate the real interest rate when the inflation rate is 3%, 4%, and 5%. (Round your responses to two decimal places.) When the inflation rate is 3%, the interest rate is When the inflation rate is 4%, the interest rate is When the inflation rate is 5%, the interest rate is %. %. %. Assume the monetary policy curve is given by r = 1.75 +0.25π. Calculate the real interest rate when the inflation rate is 3%, 4%, and 5%. (Round your responses to two decimal places.) When the inflation rate is 3%, the interest rate is When the inflation rate is 4%, the interest rate is When the inflation rate is 5%, the interest rate is %. %. %.

Answer rating: 100% (QA)

The real interest rate r is given by the formula r 175 025 pi ... View the full answer