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    If the Expected Real Interest Rate 5% and Expected Inflation
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If the Expected Real Interest Rate 5% and Expected Inflation

Question 30

Question 30

Multiple Choice

If the expected real interest rate 5% and expected inflation 3%,the nominal interest rate in year t is approximately


A) 2%.
B) 3%.
C) 5%.
D) 8%.
E) 11%.

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