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label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

if the nominal rate of interest is 12.5 percent and the real rate of interest is 8.51 percent what is the expected rate of inflation? Round two decimal places

Jul 3rd, 2015

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

nominal rate = real interest rate + inflation rate.

or  inflation rate.= nominal rate - real interest rate ;

inflation rate = 12.5-8.51 = 3.99 %  (Answer)

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Jul 3rd, 2015

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