True nominal interest rate equation to determine the rates

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Reference no: EM131490350

The Republic of New South? Brazillia, a? small, developing island country in South Central? America, is experiencing a very high inflation rate at this time. The annual inflation rate is32?%. If the real rate of interest is 1.5?%, what nominal interest rates must the residents of New South Brazillia get to stay ahead of inflation and still have a reward for? waiting? Use the approximate nominal interest rate equation and the true nominal interest rate equation to determine the rates.

Reference no: EM131490350

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