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Fishers Effect If im using Fishers effect to calculate the Real interest rate but I already have the real interest rate and inflation rate, is
Fishers Effect
If im using Fishers effect to calculate the Real interest rate but I already have the real interest rate and inflation rate, is my calculation below correct in finding the nominal rate?
Real Interest Rate = 1.5
Nominal Rate = Unknown?
Inflation Rate = 1.9
Real Interest Rate = Nominal Rate - Inflation Rate
1.5 = ? - 1.9
1.9 +1.5 = ?
Nominal rate = 3.4
is this correct or can you not calculate the nominal rate this way?
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