From 1991 to2000, the U.S. economy had an annual inflation rate of around 2.77 2.77%. The historical
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Question:
From 1991 to2000, the U.S. economy had an annual inflation rate of around 2.77
2.77%. The historical annual nominalrisk-free rate for this same period was around 6.23
6.23%. Using the approximate nominal interest rate equation and the true nominal interest rateequation, compute the real interest rate for that decade.
What is the estimated real interest rate using the approximate nominal interest rate equation for thatdecade?
(Round to two decimalplaces.)
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