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Inflation in the United States is 2% per year and in Australia, it is 3% per year. The nominal interest rate in Australia is 6%.
Inflation in the United States is 2% per year and in Australia, it is 3% per year. The nominal interest rate in Australia is 6%. What does the Fisher effect predict the nominal interest rate in the United States to be?
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The Fisher effect is a theory that states that the real interest rate in a country is equal to the n...
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