Answer to Question #58692 in Macroeconomics for bre
rises to 10%, then, according to the Fisher effect,
what is the change in the
real rate of interest?
nominal rate of interest?
the change in the real rate of interest will be zero, but the nominal rate of interest will increase by 5% from 3%+5% = 8% to 8% + (10% - 5%) = 13%.
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