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    Macroeconomics Study Set 60
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    Exam 15: A Dynamic Model of Economic Fluctuations
  5. Question
    The Ex Ante Real Interest Rate That Prevails at Time
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The Ex Ante Real Interest Rate That Prevails at Time

Question 2

Question 2

Multiple Choice

The ex ante real interest rate that prevails at time t equals:


A) it - Etπt.
B) it - Etπt + 1.
C) it - πt.
D) it - πt + 1.

Correct Answer:

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