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bmh12e bmh12e
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A year ago
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?
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Macroeconomics

Macroeconomics


Edition: 3rd
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schmienceschmience
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bmh12e Author
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This calls for a celebration Person Raising Both Hands in Celebration
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Thank you, thank you, thank you!
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