STEP 1: Picture the problem The relationship between the nominal rate of interest, r Subscript nominal , the anticipated rate of inflation, r Subscript inflation , and the real rate of interest, r Subscript real , is known as the Fisher effect. STEP 2: Decide on a solution strategy The Fisher model provides a direct way of estimating the nominal rate of interest where we know the real rate and have an estimate of the anticipated rate of inflation. (Inflation and interest rates ) What would you expect the nominal rate of interest to be if the real rate is 3.9 percent and the expected inflation rate is 7.1 percent? Question content area bottom Part 1 The nominal rate of interest would be (type your answer in percentage form and round to two decimal places) enter your response here %.