The two-year interest rate is 10.2%, and the expected annual inflation rate is 5.1%. a. What is the expected real interest rate? b-1. If the expected rate of inflation suddenly rises to 7.1%, what does Fisher's theory say about how the real interest rate will change? b-2. If the expected rate of inflation suddenly rises to 7.1%, what will be the new nominal rate? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 What is the expected real interest rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Expected real interest rate %

The two-year interest rate is 10.2%, and the expected annual inflation rate is 5.1%. a. What is the expected real interest rate? b-1. If the expected rate of inflation suddenly rises to 7.1%, what does Fisher's theory say about how the real interest rate will change? b-2. If the expected rate of inflation suddenly rises to 71%, what will be the new nominal rate? Complete this question by entering your answers in the tabs below. What is the expected real interest rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places