What is the nominal interest rate in Canada if the real rate of return is 2.5% and the expected inflation rate was 4.5%?

Name: What is the nominal interest rate in Canada if the real rate of return is 2.5% and the expected inflation rate was 4.5%?
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Quizplus · Accepted Answer

The nominal interest rate can be calculated using the Fisher equation: nominal rate = real rate + inflation rate + (real rate * inflation rate). Plugging in the values: 2.5% + 4.5% + (2.5% * 4.5%) = 7.11%.

What Is the Nominal Interest Rate in Canada If the Real