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What should the nominal rate of interest be

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1. What would you expect the nominal rate of interest to be if the real rate is 4.75% and the expected inflation rate is 7%? Use two decimal places.

2. The expected inflation rate is 12%. If the current real rate of interest is 9%, what should the nominal rate of interest be? Use two decimal places.

3. The expected inflation rate is 3.25%. If the current real rate of interest is 10%, what should the nominal rate of interest be? Use two decimal places.

4. The expected inflation rate is 6%. If the current real rate of interest is 6%, what should the nominal rate of interest be? Use two decimal places.

Reference no: EM132646998

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