The document discusses the relationship between inflation, nominal interest rates, and real interest rates. It instructs on estimating the real interest rate using the approximate nominal interest rate equation and the Fisher effect. A data table is provided for filling in nominal rates and corresponding calculations.

1. Inflation, nominal interest rates, and real rates. Given the following information, ;. estimate the real
rate with the approximate nominal interest rate equation an the true nominal interest rate equation
(Fisher effect) for each set of nominal and infiation rates. First, fill in the approximate real interest
rate in the following table: (Round to two decimal places.) begin{tabular}{|c|l|} hline Nominal Rate
& hline 11.0% & Data table hline (Cick on the following icon Q in order to copy its contents into a
spreadsheet) end{tabular}