Determine the nominal rates for the three countries listed if they have the following inflation rates and
Question:
Canada: inflation is 4.5%.
Switzerland: inflation is 1.25%.
United States: inflation is 3%.
Nominal Rates
"Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest. The nominal...
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