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What would you expect the nominal rate of interest to be if the real rate is 4.2% and the expected inflation rate is 7.2%?
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- What would you expect the nominal rate of interest to be if the real rate is 5.3 percent and the expected inflation rate is 2.8 percent?What would you expect the nominal rate of interest to be if the real rate is 3.8percent and the expected inflation rate is 6.8 percent? The nominal rate of interest would be ______%. (Round to two decimal places.)What is the real interest rate given a nominalrate of 8.4%, and an inflationrate of 2.0%
- (Inflation and interest rates) What would you expect the nominal rate of interest to be if the real rate is 3.6 percent and the expected inflation rate is 6.8 percent?If Treasury bills are currently paying 3.05 percent and the inflation rate is 1.89 percent, what is the approximate real rate of interest? The exact real rate? Can the calculator and excel solution be provided?Inflation and interest rates What would you expect the nominal rate of interest to be if the real rate is 4.4% and the expected in for inflation rate is 7.2?
- You observe a nominal rate of 5.48% at the same time you learn that the inflation rate is 2.68%. What is the real rate, given this information?Assume inflation is 2.60% and the nominal (annual) interest rate is 6.35%. If the interest rate is held constant, but inflation rises to 5.25%, does it cost more or less in real terms to borrow money than when the inflation rate was 2.60%? Explain your answer and make sure to include your real interest rates in both situation.What would you expect the nominal rate of interest to be if the real rate is 2.75% and the expected inflation rate is 13.5%? Use two decimal places – show work.
- The risk-free rate on T-bills recently was 1.23%. If the real rate of interest is estimated to be 0.80%, what was the expected level of inflation?suppose the real intrest rate is 2.5% and the inflation rate is 7% . what is the nominal intrest rate?The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest? Explain.