If the inflation rate is 4% per year and the market interest rate is known to be 10% per year, what is the implied real interest (inflation-free) rate in this inflationary economy? The implied real interest (inflation-free) rate is %. (Round to two decimal places.)

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If the inflation rate is 4% per year and the market interest rate is known to be 10% per year, what is the implied real
interest (inflation-free) rate in this inflationary economy?
The implied real interest (inflation-free) rate is%. (Round to two decimal places.)
Transcribed Image Text:If the inflation rate is 4% per year and the market interest rate is known to be 10% per year, what is the implied real interest (inflation-free) rate in this inflationary economy? The implied real interest (inflation-free) rate is%. (Round to two decimal places.)
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