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According to the Fisher effects, if the expected inflation rate is 1.2 percent per year and the nominal risk-free rate is 5 percent per year,

According to the Fisher effects, if the expected inflation rate is 1.2 percent per year and the nominal risk-free rate is 5 percent per year, then the closest real risk-free rate is:

6.2 percent

3.8 percent

6.2 percent

2.8 percnet

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