This is a question I have....
Write a equation that defines the real interest rate. Use the equation to explain why unexpectedly high inflation redistributes income from creditors to debtors.
**I know that real interest rate = nominal interest rate - rate of inflation, but don%26#039;t know how to answer the question above.
How to write a real interest rate equation.?
This site should help you:
http://economics.about.com/cs/interestra...
Hope this helps and that you understand the equation better soon! ;-)
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