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Given the anticipated rate of inflation (i) of 1.7% and the real rate of interest (R) of 1.4%, find the nominal rate of interest (r)

Given the anticipated rate of inflation (i) of 1.7% and the real rate of interest (R) of 1.4%, find the nominal rate of interest (r) using the Fisher effect. (Round to the nearest basis point.)

Select one:

a. 2.96%

b. 3.21%

c. 3.12%

d. 3.10%

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