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Explain the Fisher effect and its mechanics by walking the trainees through a step-by-step explanation in the following hypothetical situation: If the real interest rate
Explain the Fisher effect and its mechanics by walking the trainees through a step-by-step explanation in the following hypothetical situation: If the real interest rate is 5%, the U.S. inflation rate is at 3%, and the inflation rate of the euro area (the countries that use the euro) is at 4%, what are the nominal interest rates for both the United States and the euro area? Interpret the calculations for the audience
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