Question

10. What is the equation for the ex post value of the real rate of interest?...

10. What is the equation for the ex post value of the real rate of interest? Which, if any of the components of this equation are unknown

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Answer #1

ANSWER ::

=> Ex Post Value of The Real Rate Of Interest shows That What People Actual End Up Earning On Their Loans And Bonds. it shows The actual end up Earning of Person

Equation = r - π

Where, i = Interest rate

π = Actual Inflation Rate (Unknown)

In That Equation π Value is Unknown Because It shows The Inflation So Its value Is Not Known Until It happened In The country So In The Ex Post Real Interest Rate Equation π ( Actual inflation rate Is unknown )

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