If the inﬂation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inﬂationary economy?

Mr. Dubey • 52.30K Points
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Q. If the inﬂation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inﬂationary economy?

(A) 0.1145

(B) 0.09

(D) 0.0849

Correct : Option (D)

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Q. If the inﬂation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inﬂationary economy?

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