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Difference between real and nominal interest rate

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What is the difference between real and nominal interest rate. Asssume that currently (2021) the prime interest rate is 3.45%, and inflation rate is 2.8%. Also assume that people expect that in?ation will average 3.0% in 2022. Calculate ex-ante real interest rate and ex-post real interest rate based on the above information. Show

Reference no: EM133077496

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