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16 February, 05:25

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?

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  1. 16 February, 05:29
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    -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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