According to the Fisher Effect,if the "Real" Rate of Interest

question 15

Multiple Choice

According to the Fisher effect,if the "real" rate of interest in a country is 4 percent and the expected annual inflation is 9 percent,what would the "nominal" interest rate be?

• A)5 percent
• B)13 percent
• C)9 percent
• D)36 percent
• E)2.25 percent

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