20.) If the expected inflation rate is 5% and the real required return is 6%, then the Fisher effect says that the nominal interest rate should be a) 1% b) 11.3% c) 11% d) 6% 21.) The inflation rates in the U.S. and France in January 1991 were expected to be 4% per annum and 7% per annum, respectively. If the current spot rate that day was $.1050, then the expected spot rate in three years was a) S.1150 b) $.1112 c) $.0964 d) $.0992