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Which of the following equations is correct?
carlvh37
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Which of the following equations is correct?
Which of the following equations is correct?
▸ Expected real interest rate = Nominal interest rate ÷ Expected inflation rate.
▸ Expected real interest rate = Nominal interest rate + Expected inflation rate.
▸ Expected real interest rate = Expected inflation rate ÷ Nominal interest rate.
▸ Expected real interest rate = Nominal interest rate ‒ Expected inflation rate.
Textbook
Macroeconomics
Edition:
3
rd
Authors:
Acemoglu, Laibson, List
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Expected real interest rate = Nominal interest rate ‒ Expected inflation rate.
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