The fisher equation tells us that the real interest rate, Finance Basics

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The fisher equation tells us that the real interest rate

The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest? Explain.

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Finance Basics: The fisher equation tells us that the real interest rate

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