If the real rate of interest is 4%, actual inflation for the last year was 5%, and expected inflation is 8%, the Fisher effect predicts what current level of nominal interest rates?
A) 9%
B) 8%
C) 13%
D) 12%

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The Answer of If the real rate of interest is 4%, actual inflation for the last year was 5%, and expected inflation is 8%, the Fisher effect predicts what current level of nominal interest rates?
A) 9%
B) 8%
C) 13%
D) 12%

If the Real Rate of Interest Is 4%, Actual Inflation