If the inflation rate is 4% per year and the market interest rate is known to be 13% 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)

If the inflation rate is 4% per year and the market interest rate is known to be 13% 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)

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 6WNG

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If the inflation rate is 4% per year and the market interest rate is known to be 13% 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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