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Inflation rate is half the nominal interest rate prevailing in the market. The Nominal Interest rate is 3.6% Calculate real interest rate

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter7: Inflation

Section: Chapter Questions

Problem 1SQ

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Inflation rate is half the nominal interest rate prevailing in the
market. The Nominal Interest rate is 3.6%
Calculate real interest rate

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