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Assume the expected inflation rate is
percent. If the current real rate of interest is
percent, what should the nominal rate of interest be?
Step by step
Solved in 2 steps
- 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%?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?(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?
- (Inflation and interest rates) What would you expect the nominal rate of interest to be if the real rate is 3.9 percent and the expected inflation rate is 6.7 percent?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.Given the anticipated rate of inflation (i) of 2.13% and the real rate of interest (R) of 3.1%, find the nominal rate of interest (r). Mathematical procedure needed
- suppose the real intrest rate is 2.5% and the inflation rate is 7% . what is the nominal intrest rate?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?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.)
- (Inflation and Interest rates) What would you expect the nominal rate of interest to be if the real rate is 4.1 percent and the expected inflation rate is 6.6 percent ? The nominal rate of interest would be ____ % (Round to two decimal places.)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 nominal interest rate is .07 and the expected inflation rate is .02. The real rate of interest is