What would you expect the nominal rate of interest to be

Reference no: EM132890194

1. Nominal Rate of Interest. Suppose the real interest rate is 6 percent and the expected inflation is 2 percent. What would you expect the nominal rate of interest to be?

2. Real Interest Rate. Suppose that Treasury bills are currently paying 9 percent and the expected inflation is 3 percent. What is the real interest rate?

Reference no: EM132890194

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