Solved: Changes in real interest rates, Finance Basics

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Changes in real interest rates

Case Situation:

I agree that the changes in real interest rates change in accordance with the change in the exchange rate. The nominal interest rate minus the inflation interest rate would be the real rate of return. This allows the investors to know whether or not they will have erosion through inflation or not.

My question is: Do you agree and why?

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Finance Basics: Changes in real interest rates

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Finance Basics: Changes in real interest rates

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