You expect inflation over the next year to be (-1)%. Actual inflation over the last year was 6.07%, and the current nominal interest rate is 9.08%. What is your expected real rate of interest (in %)? Round to 0.01%. E.g., if your answer is 3.145%, record it as 3.15.

Answer rating: 100% (QA)

The expected real rate of interest can be calculated using the Fisher equation which re... View the full answer