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55. According to the Fisher Equation, if U.S. investors expect a 5% rate of domestic inflation over one year and require a 3% real return

55. According to the Fisher Equation, if U.S. investors expect a 5% rate of domestic inflation over one year and require a 3% real return on investments over one year, the exact nominal interest rate on one-year U.S. treasury security would be:

a. 2 %

b. 3 %

c. 8.15 %

d. 5 %

e. 8 %

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