In 2015 the nominal interest rate is 6 and the general
In 2015 the nominal interest rate is 6% and the general price level is $100. People expect the price level in 2016 to be $104 but it turns out to be $108. The ex-ante real interest rate equals:
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in 2015 the nominal interest rate is 6 and the general price level is 100 people expect the price level in 2016 to be
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