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The Fisher Equation tells us the relationship between the nominal interest rate, the real interest rate and expected future inflation. Assuming 5% real rate and
The Fisher Equation tells us the relationship between the nominal interest rate, the real interest rate and expected future inflation. Assuming 5% real rate and 3% expected rate of inflation, what is the nominal rate using the exact relationship according to the Fisher Equation? Multiple Choice 8.15% 8% 7.15% 7%
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