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Expected rate of inflation equals

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Currently, the general price level is 160.00 and people expect it to increase to 164.00 next year. Therefore, the expected rate of inflation equals ( )  percent. 

There is a one-year bond that promises to pay $130,200.00 next year and is selling for $120,000.00 today in the bond market. The ex-ante real interest rate on this bond equals ( )  percent.

Reference no: EM132302993

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