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Subtracting the inflationrate from the nominal rate

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As a rule of thumb, real rates of interest are calculated by subtracting the inflationrate from the nominal rate. What is the error from using this rule of thumb forcalculating real rates of return in the following cases? Nominal rate (%) 4 8 11 19 Inflation rate (%) 1 3 2 4

Reference no: EM131054145

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