What nominal interest rate must the residents

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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 is 32?%. If the real rate of interest is 1.6?%, 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.

Problem 1: Using the approximate nominal interest rate? equation, what nominal interest rate must the residents of New South Brazillia get to stay ahead of inflation and still have a reward for? waiting?

Reference no: EM132678433

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