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Answer:
Nominal Interest rate=11.9%
Step-by-step explanations:
The Fisher effect is a theory propounded by an economist named Irving Fisher.
Fisher's equation shows the relationship between real Interest rate, expected inflation rate and nominal Interest rate.
It can be calculated by subtracting the expected inflation rate from the nominal Interest rate to give the real Interest rate.
Real Interest rate= nominal Interest rate - expected inflation rate
Given,
Real Interest rate= 4.4%=0.044
Expected inflation rate=7.5%=0.075
Nominal Interest rate=?
Therefore,
Real Interest rate=nominal Interest rate - expected inflation rate
Nominal Interest rate=Real Interest rate+expected inflation rate
Nominal Interest rate=0.044+0.075
Nominal Interest rate=0.119
Nominal Interest rate=11.9%
If a student tells me that an argument that has a false hypothesis cannot be valid, I would reply that we need to look carefully at the meaning of validity in the context of logic. In everyday speech, we tend to use “valid” to mean the same thing as “true” or “accurate.” In logic, this is not the way the term is used.
18hrs because its a scale factor of 1.5
