econ

CFA Level II
#1

If the expected inflation is 100% and the real required rate of return is 6%, the nominal interest rate according to the exact form of the Fisher effect is closest to: A) 112.0%. B) 6.0%. C) 12.0%. D) 95.0%.

#2

(1+.06)(1+1) -1 = 1.12 x 100 = 112%

#3

open and shut case. good job mcleod. i obviously got it wrong.

#4

Thanks. I almost said C but I caught my mistake

#5

i choose c, ofcourse.