ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The scatter plot on the right shows combinations of nominal interest
rates and inflation rates for 10 mythical countries.
According to the Fisher equation, you would expect that all points
should be
the 45-degree line.
The real rate of interest for Atlantis is%. (Round your response to
one decimal place.)
The real rate of interest for Alexandria is%. (Round your response
to one decimal place.)
Nominal Interest Rate (%)
å
20-
18-
16-
14-
12-
104
8-7200
6-
4-
10.50
Ho
0-
0
•
2
Atlantis
Alexandria
15:00 18:40
10 12 14
8
Inflation Rate (%)
D
16 18
20
o
O
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Transcribed Image Text:The scatter plot on the right shows combinations of nominal interest rates and inflation rates for 10 mythical countries. According to the Fisher equation, you would expect that all points should be the 45-degree line. The real rate of interest for Atlantis is%. (Round your response to one decimal place.) The real rate of interest for Alexandria is%. (Round your response to one decimal place.) Nominal Interest Rate (%) å 20- 18- 16- 14- 12- 104 8-7200 6- 4- 10.50 Ho 0- 0 • 2 Atlantis Alexandria 15:00 18:40 10 12 14 8 Inflation Rate (%) D 16 18 20 o O
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