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24-03-2019
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In 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the united states. what was the real interest rate in 1975?

Respuesta :

24-03-2019

-4.45%

Real interest rate is the nominal interest rate minus the rate of inflation:

7.85-12.3 = -4.45%

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