structural relationship between the long-run interest rate and productivity growth rate. The structural approach allows use of … long-run interest rate rises slightly more than one for one with productivity growth rate. The projected real interest rate … on 10-year U.S. government bonds is in the 1.5-2.0 percent range under intermediate assumptions on future productivity …

The main objective of this study is to investigate the effect of interest rate, inflation rate, and GDP on real …, and inflation level) is employed. Study adopted Johansen test. Findings indicated that both trace test and max eigenvalue … inflation causes interest rate. On the other hand all other variables are independent with each other. Regressionwas conducted …