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Suppose the real rate on your investment is 6.5 percent and the inflation rate is 1.4 percent. What nominal rate would you expect to see

Suppose the real rate on your investment is 6.5 percent and the inflation rate is 1.4 percent. What nominal rate would you expect to see on your investment? Use the Fisher Effect Formula.

rev: 09_18_2012

Multiple Choice

  • 7.99%

  • 6.79%

  • 9.19%

  • 8.79%

  • 7.19%

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