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Let r r Denote the Real Interest Rate and I Denote the Nominal

Question 46

Multiple Choice

Let r r denote the real interest rate and i denote the nominal interest rate; these two interest rates are related by:


A) i=πi = \pi
B) i=rπi = r - \pi
C) i=r+πi = r + \pi
D) i=r/πi = r / \pi
E) None of these answers are correct.

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