Calculate the expected real interest rate

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Suppose, the current year is the base year for the price index calculation and the Nominal interest rate is 6.59% and the Expected inflation rate is 4.61%:

a.) Calculate the expected real interest rate ____% (Enter your response as a percentage rounded to two decimal places).

b.) What is the anticipated value of the price index next year___? ,(Enter your response rounded to one decimal place).

Reference no: EM131994654

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