Problem
Answer the following questions about the nominal and real interest rates:
a. What would be the real interest rate if the nominal interest rate were 14 percent and the inflation rate were 10 percent? If the nominal interest rate were 8 percent and the inflation rate were 1 percent?
b. What would happen to the real interest rate if the nominal interest rate went from 9 percent to 15 percent when the inflation rate went from 3 percent to 10 percent? If the nominal interest rate went from 11 percent to 7 percent when the inflation rate went from 8 percent to 4 percent?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.