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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.
Nominal Interest Rate = Real Rate = Inflation Rate
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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