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Title: Suppose the interest rate that banks in Techland charge one another for overnight loans is 5 ... Post by: bmh12e on Dec 27, 2022 Suppose the interest rate that banks in Techland charge one another for overnight loans is 5 percent, the long-term nominal interest rate is 4.5 percent, and the long-term expected inflation rate is 3 percent.
a) What is the long-term expected real interest rate? b) How will the long-term expected real interest rate be affected if the central bank of Techland starts purchasing government bonds from banks? Title: Suppose the interest rate that banks in Techland charge one another for overnight loans is 5 ... Post by: schmience on Dec 27, 2022 Content hidden
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