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If the bank posts a nominal interest rate of 7 per cent per year and the inflation rate is 5 per cent per year, then the real interest rate would be __%.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 37P: Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time...

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If the bank posts a nominal interest rate of 7 per cent per year and the inflation rate is 5 per cent per year, then the real interest rate would be __%.

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