Low energy prices create deflation

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“Low energy prices create deflation, which can drive the real interest rates up.” Use the equation connecting the real and the nominal interest rate to the rate of inflation to justify this statement.

Reference no: EM131107459

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Low energy prices create deflation : “Low energy prices create deflation, which can drive the real interest rates up.” Use the equation connecting the real and the nominal interest rate to the rate of inflation to justify this statement.
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