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Assume that the current nominal interest rate is 4%, the expected rate of inflation is 2% and the marginal tax rate is 25%. If the

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Assume that the current nominal interest rate is 4%, the expected rate of inflation is 2% and the marginal tax rate is 25%. If the expected rate of inflation increases by 300 basis points (to a new level of 5%) what will be the new nominal rate of interest according to Fisher? ... According to Darby/Feldstein? 1%; 0% 2%; 1% 7%;8% d. 7%; 9% a

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