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10-06-2021
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With the real interest rate equal to 3% and the expected inflation equal to 2â€‹%. The value of the nominal interest rate is _____________â€‹%.

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Priatouri Priatouri

12-06-2021

Answer:

Nominal interest rate = 5%

Explanation:

Below is the calculation of the nominal interest rate:

The nominal interest rate can be calculated by adding inflation with the real interest rate.

Nominal interest rate(N) = Real interest rate (R) + Inflation

Nominal Interest rate (N) = 3% + 2%

Nominal interest rate (N) = 5%

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