The costs associated with anticipated inflation

Reference no: EM13668381

b. Which years were years of inflation? What do you expect to happen to real interest rates during this time period if nominal rates remain unchanged?
The years with inflation are 1990, 1995, 1996, 1999, 2000, 2003, 2004, and 2005.

c. In which years did deflation occur? What do you expect to happen to real interest rates during this time period if nominal rates remain unchanged?

There are no years that had deflation.
4. What are some of the costs associated with anticipated inflation? Why do these differ from those associated with unanticipated inflation?

Reference no: EM13668381

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