Describe how the short-term interest rate and the rate of inflation move together over time. Now compare and contrast the nominal interest rate and the real interest rate over time – how is the real interest rate different and why does this matter? Why do you suppose that macroeconomists call the period of time from the late 1960s to the early 1980s “The Great Inflation”? Describe how the short-term interest rate and the rate of inflation move together over time. Now compare and contrast the nominal interest rate and the real interest rate over time – how is the real interest rate different and why does this matter? Why do you suppose that macroeconomists call the period of time from the late 1960s to the early 1980s “The Great Inflation”? Describe how the short-term interest rate and the rate of inflation move together over time. Now compare and contrast the nominal interest rate and the real interest rate over time – how is the real interest rate different and why does this matter? Why do you suppose that macroeconomists call the period of time from the late 1960s to the early 1980s “The Great Inflation

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short term interest rate and the rate of inflation move together over time This is the reason for th... View the full answer