Problemif investors are to earn a 3 real interest rate what, Ask an Expert

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Problem:

If investors are to earn a 3% real interest rate, what nominal interest rate must they earn if the inflation rate is (Do not round intermediate calculations. Round your answers to 2 decimal places.

a. Zero

b. 4%

c. 6%

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166504

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