mar350

you got it

malbec

Sorry for the confusion. I guess there is only one formula.

So if I am given r in real terms i just do 1/(r+(1-pass through)*infl))

If given in nominal terms 1/((r-i)+(1-pass through)*infl))

Is that right?

Howd

ZeroBonus Wrote:
-------------------------------------------------------
> the one on the mock had it r-inflation + (1-pass
> thru)*inflation
>
> and it had me stumped because the formula u used
> didn't get me the right answer. I think it was the
> last question on the PM


the original formula is for real rate, this one just subtracts inflation from nominal rate to get the real rate.

RMontgomery

the one on the mock had it r-inflation + (1-pass thru)*inflation

and it had me stumped because the formula u used didn't get me the right answer. I think it was the last question on the PM

jcole21

What's the other formula? I only recognize the one you gave for calculating inflation flow through.

dvilayphet

which is the other formula