Question: two part question. Please explain each answer with details. Inflation, nominal interest rates, and real ratos From 1991 to 2000, the US economy had an

two part question. Please explain each answer with details.

Inflation, nominal interest rates, and real ratos From 1991 to 2000, the US economy had an annual inflation rate of around 2 30% The historical annual nominal risk free rate for this same period was around 5 61%. Using the approximate nominal interest rate equation and the true nominal interest rate equation, compute the real interest rate for that decade What is the estimated real interest rate using the approximate nominal interest rate equation for that decado? % (Round to two decimal places)

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