(Solved): b.Explain the relationship between interest rates and unemployment. How do changes in th ...

b.Explain the relationship between interest rates and unemployment. How do changes in the interest rate affect the level of unemployment in the economy?
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c.Consider the relationship between interest rates and inflation.
(i)Explain the difference between real and nominal interest rates.
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(ii)If the Fed takes actions that will change interest rates, how is this likely to affect inflation?
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