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Macroeconomics 13th Edition by William Baumol ,Alan Blinder
Edition 13ISBN: 978-1305280601Macroeconomics 13th Edition by William Baumol ,Alan Blinder
Edition 13ISBN: 978-1305280601 Exercise 4
Long-term government bonds now pay approximately 3 percent nominal interest. Would you prefer to trade yours in for an indexed bond that paid a 1 percent real rate of interest What if the real interest rate offered were zeroed What if it were negative₁ percent What do your answers to these questions reveal about your personal beliefs about future inflation
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Macroeconomics 13th Edition by William Baumol ,Alan Blinder
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