Advanced Placement (AP), 25.10.2021 17:20 amylumey2005
Suppose that the nominal interest rate is 6 percent and the real interest rate is 3 percent.
Instructions: In part a, enter your answer as a whole number. In part b, round your answer to the nearest whole number.
a. What is the inflation premium?
percent
b. Given the level of inflation, how many years will it take for the price level to double?
years
Answers: 1
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Suppose that the nominal interest rate is 6 percent and the real interest rate is 3 percent.
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