Question: Given it = 9%, Pt = 120.0, Pt+ 1 = 129.6 and Pet +1 = 128.4, calculate the expected real interest rate in period t

Given

it

=

9%,

Pt

=

120.0,

Pt+1

=

129.6

and

Pet+1

=

128.4,

calculate the expected real interest rate in period

t:

The expected real interest rate =

enter your response here%

(enter

your response as a percentage to one decimal

place).

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