If the nominal rate of interest is 13.75% and the real rate of interest is 7.05%, what is the expected rate of inflation? (Round to Two Decimal Places)

Thank you for the opportunity to help you with your question!

Real Interest rate= Nominal Interest rate - Expected Inflation Rate

Expected Inflation Rate= Nominal Interest Rate - Real Interest Rate

so,

13.75 -7.05= 6.70

Secure Information

Content will be erased after question is completed.

Enter the email address associated with your account, and we will email you a link to reset your password.

Forgot your password?

Sign Up