Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: in part a, enter your answer as a whole number In part b, round your answer to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers a. What is the real interest rate? percent b. What is the real interest rate if the inflation premium is 3 percent while the nominal interest rate is 0.5 percent? percent

Brief Principles of Macroeconomics (MindTap Course List)
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ISBN:9781337091985
Author:N. Gregory Mankiw
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Chapter12: Money Growth And Intlation
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Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent.
Instructions: in part a, enter your answer as a whole number. In part b, round your answer to 1 decimal place. If you are entering any
negative numbers be sure to include a negative sign (-) in front of those numbers
a. What is the real interest rate?
percent
b. What is the real interest rate if the inflation premium is 3 percent while the nominal interest rate is 0.5 percent?
percent
Transcribed Image Text:Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: in part a, enter your answer as a whole number. In part b, round your answer to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers a. What is the real interest rate? percent b. What is the real interest rate if the inflation premium is 3 percent while the nominal interest rate is 0.5 percent? percent
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