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    smedellin01 Posts: 1, Reputation: 1
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    Mar 3, 2011, 03:29 PM
    Fisher effect
    According to the Fisher effect, if the real interest rate is 3 percent and the
    Nominal interest rate is 8 percent, what rate of inflation is the financial
    Marketplace expecting? Explain the reasoning behind your answer. If the
    Nominal rate rises to 11 percent and follows the Fisher effect, what would you
    Conclude about the expected inflation rate? The real rate?

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