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Author Question: The Costs of InflationIf the nominal interest rate is 7% and the real interest rate is 5%, then the ... (Read 86 times)

Aimless0988

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on: Nov 23, 2022

Question 1

The Costs of Inflation

If you are paid an interest rate of 6% on your savings account and the inflation rate is 8%, then you are earning a real interest rate of ________.
◦ -2%
◦ 14%
◦ 2%
◦ 6%

Question 2

The Costs of Inflation

If the nominal interest rate is 7% and the real interest rate is 5%, then the inflation rate is ________. (Round to the nearest hundredth when appropriate.)
◦ 6%
◦ 5%
◦ 12%
◦ 2%
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by Aimless0988 on Nov 23, 2022

feiojef

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Reply #1 on: Nov 23, 2022
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Aimless0988

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Reply 2 on: Nov 23, 2022
YES! Correct, THANKS for helping me on my review

atrochim

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Reply 3 on: Yesterday
Wow, this really help

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