Mathematics, 16.01.2021 14:00 payshencec21
1. The nominal interest rate is8% and the inflation rate is 6%, what is the real rate of interest?
2. If the real rate of interest is 2%, and the expected rate of inflation is 3% then the nominal rate of interest is:
use this formula to solve 1&2,
1+ nominal interest rate = (1+ real interest rate) * (1+ inflation rate)
Answers: 2
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