Business, 05.03.2020 05:39 beausisugpula

Suppose the one year nominal interest rate is 3 percent and that the expected inflation is equal to 4 percent. The price index over this one year period went from 218 to 223. Compare the ex-ante real rate of interest to the ex-post real rate of interest. Which real rate of interest would you more likely be willing to spend today and which real rate of interest would you more likely be willing to save and why

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Suppose the one year nominal interest rate is 3 percent and that the expected inflation is equal to...

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