Multiple Choice
According to the International Fisher Effect,if the real rate of interest in a country is 5 percent and the annual inflation is expected to be 10 percent,the nominal interest rate will be
A) 5 percent.
B) 10 percent.
C) 12.5 percent.
D) 15 percent.
E) 20 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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