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Currently, the general price level is 160.00 and people expect it to increase to 164.00 next year. Therefore, the expected rate of inflation equals ( ) percent.
There is a one-year bond that promises to pay $130,200.00 next year and is selling for $120,000.00 today in the bond market. The ex-ante real interest rate on this bond equals ( ) percent.
i).expected rate of inflation equals... View the full answer