Answered: If the bank posts a nominal interest…

If the bank posts a nominal interest rate of 7 per cent per year and the inflation rate is 5 per cent per year, then the real interest rate would be __%.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 7SQP

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If the bank posts a nominal interest rate of 7 per cent per year and the inflation rate is 5 per cent per year, then the real interest rate would be __%.

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