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If the nominal interest rate is 6.9% and the real interest rate is 5.9%, what is...

If the nominal interest rate is 6.9% and the real interest rate is 5.9%, what is the inflation rate? Enter your answer as a percentage. Do not enter the percentage sign in your answer.

Enter your response below (rounded to 2 decimal places).

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Answer #1

Nominal rate = Real rate + sn flation. %3D 5.90 + 9nflation 6.90 -> 6.90 -5.90 Ans In fla tion %3D l.00 %.

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