If the nominal interest rate is 8 and the risk-free rate is
If the nominal interest rate is 8% and the risk-free rate is 3%, the expected inflation rate must be
A.3%
B.5%
C.11%
D. cannot be determined without additional information
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question no 1use the long-run model from chapter 3 the answer this questiona suppose there is a permanent increase
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if the nominal interest rate is 8 and the risk-free rate is 3 the expected inflation rate must bea3 nbspnbspnbspnbsp b5
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