Business, 07.03.2020 01:24 unknown337

Suppose that the nominal rate of interest is 5 percent and the inflation premium is 1 percent.

What is the real interest rate? %

Alternatively, assume that the real interest rate is 4 percent and the nominal interest rate is 6 percent.

What is the inflation premium? %

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Suppose that the nominal rate of interest is 5 percent and the inflation premium is 1 percent.
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