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Real vs. Nominal Interest Rates. Suppose the nominal value of your savings increased from $5000 to $5350 between 2017 and 201
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1 +5350-5000/5000 (100)=7%

2 =So price rose by 2% from 100 to 200.so real =nominal-inflation=7-2=5%

3 worse off because real=5% only compared to expected value of 7-1=6%

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