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(Fisher Effect) You have an estimate of 4.9% for the real rate of return in the economy and an inflation prediction of 2.8%. According to

  1. (Fisher Effect) You have an estimate of 4.9% for the real rate of return in the economy and an inflation prediction of 2.8%. According to the Fisher Effect, what is the estimated nominal rate of interest for this economy? (You may provide just the approximate estimated rate. You may also include the full estimate for bonus points.) As a first step, provide the formula needed to calculate this problem.

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