Consider model of three-period-lived individuals

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Consider a model of three-period – lived individuals. Suppose the two-period real rate of return on capital is X = 1. 44, the rate of population growth is n = 1. 1, and the rate of fiat money creation is z = 1. 2. Find the following net rate for both one and two periods:

a. nominal rate of interest

b. real rate of interest

c. rate of inflation

d. real rate of return on money.

Reference no: EM131099012

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