Answered: The interest rate in the UK is 8%. The…

The interest rate in the UK is 8%. The inflation rate in the US is 3% and in the UK 5%. Use the Fisher effect to find the US interest rate.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The interest rate in the UK is 8%. The inflation rate in the US is 3% and in the UK 5%. Use

the Fisher effect to find the US interest rate.

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