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According to the Fischer Effect,if the "Real" Rate of Interest

Question 90

Multiple Choice

According to the Fischer effect,if the "real" rate of interest in a country is 4 percent and expected annual inflation is 9 percent,the "nominal" interest rate will be _____.


A) 5 percent
B) 13 percent
C) 9 percent
D) 36 percent
E) 2.25 percent

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