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14 July, 04:24

If both the real interest rate and the nominal interest rate are 3 percent, then the

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  1. 14 July, 04:45
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    If both the real interest rate and the nominal interest rate are 3%, then the inflation premium is zero. Because there is no inflation due to interest rates being equal. Inflation premiums is a way lenders use interest rates to cause raises in nominal interest rates, so if they equal, they are at an inflation premium of zero.
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