Multiple Choice
According to the Fisher effect, if the "real" rate of interest in a country is 3 percent and the expected annual inflation is 8 percent, what would the "nominal" interest rate be?
A) 5.5 percent
B) 11 percent
C) 9 percent
D) 24 percent
E) 2.25 percent
Correct Answer:
Verified
Correct Answer:
Verified
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