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  3. 14. inflation, nominal interest rates, and real ra

14. Inflation, nominal interest rates, and real rates. Given the following informa- tion, estimate the...

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Accounting

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14. Inflation, nominal interest rates, and real rates. Given the following informa- tion, estimate the real rate with the approximate nominal interest rate equa- tion and the true nominal interest rate equation (Fisher effect) for each set of nominal and inflation rates. Nominal Rate 13.0% 8.0% 21.0% 4.0% Inflation Rate 5.0% 2.0% 14.0% 7.0% Approximate Real Rate True Nominal Rate

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