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Dramatic decrease in interest rates

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Over the past few years, the U.S. economy experienced a dramatic decrease in interest rates quoted on U.S. Treasury debt, business loans, and mortgages. At the same time the inflation rate gradually declined more than expected. What happened to ex ante versus ex post real interest rates during this period? What is the Fisher Equation? Write down the equation and identify the components. Use the Fisher equation to support your answer.

Reference no: EM131270415

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