Consider our model of three-period – lived individuals of this chapter. Suppose the two-period real rate of return on capital is X = 1. 44, the rate of population growth is n = 1. 1, and the rate of fiat money creation is z = 1. 2. Find the following net rate for both one and two periods:
a. nominal rate of interest
b. real rate of interest
c. rate of inflation
d. real rate of return on money.