Consider the model of three-period-lived individuals

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Consider the model of three-period-lived individuals. Suppose the two-period real rate of return on captial is X=1.44, the rate of population growth is n=1.1, and the rate of fiat money creation is z= 1.2. Find the following net rate for both one and two periods:

a. nominal rate of interest

b. real rate of interest

c. rate of inflation

d. real rate of return on money

Reference no: EM131091374

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