Kaylavaughn5303 Kaylavaughn5303
  • 03-03-2018
  • Business
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If both the real interest rate and the nominal interest rate are 3 percent, then the

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MrsTriplet MrsTriplet
  • 13-03-2018
If both the real interest rate and the nominal interest rate are 3%, then the inflation premium is zero. Because there is no inflation due to interest rates being equal. Inflation premiums is a way lenders use interest rates to cause raises in nominal interest rates, so if they equal, they are at an inflation premium of zero. 
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