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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 3
Use the following information to work the Problems.
From 2009 through 2012, the long-term real interest rate paid by the safest U.S. corporations fell from 4 percent to 2 percent. During that same period, the federal funds rate was roughly constant at 0.25 percent a year.
What do you think happened to inflation expectations between 2009 and 2012 and why?
From 2009 through 2012, the long-term real interest rate paid by the safest U.S. corporations fell from 4 percent to 2 percent. During that same period, the federal funds rate was roughly constant at 0.25 percent a year.
What do you think happened to inflation expectations between 2009 and 2012 and why?
Explanation
Verified
Verified
Expected rate of inflation:
The real in...
Macroeconomics 11th Edition by Michael Parkin
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