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The expected real rate of interest is 1.7%, actual inflation over the last year was 7.1%, and expected inflation over the next year is 4.3%.
The expected real rate of interest is 1.7%, actual inflation over the last year was 7.1%, and expected inflation over the next year is 4.3%. What is the current level of nominal interest rates (in %) predicted by the Fisher equation? Round to 0.01%. E.g., if your answer is 3.145%, record it as 3.15. __________________________.
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