tobeornottobe

skwak88 Wrote:
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> wbrocks, nominal = real + inf is the same thing as
> (1+nom) = (1+real)(1+inflation). The latter is
> actually the more precise measure, whereas the
> prior is an approximation.

Sorry, you're right. I just remembered the Level 1 curriculum stating that the nominal rate could be calculated both ways, with just a slight difference. I edited the post as soon as I realized it. Wow, you guys were fast to jump on that.



Edited 3 time(s). Last edit at Tuesday, May 24, 2011 at 04:08PM by wbrocks.