Anticipated rate of inflation rises

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Q1. Suppose that the nominal rate of interest is holding steady at 8 percent even as the anticipated rate of inflation rises. Illustrate what is happening to the real rate of interest?

Q2. Voluntary recycling is available in many parts of the nation. If citizens of these areas have collected recyclable material at home, they can bring it to a recycling center. These materials reduce landfill space; reduce the need for virgin material extraction also provides an inexpensive input in many production processes. The information in this question suggests Illustrate what about areas without voluntary recycling?

Reference no: EM1311968

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