Fishers effect to calculate the real interest rate

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Reference no: EM131845391

Fishers Effect

If im using Fishers effect to calculate the Real interest rate but I already have the real interest rate and inflation rate, is my calculation below correct in finding the nominal rate?

Real Interest Rate = 1.5

Nominal Rate = Unknown?

Inflation Rate = 1.9

Real Interest Rate = Nominal Rate - Inflation Rate

1.5 = ? - 1.9

1.9 +1.5 = ?

Nominal rate = 3.4

is this correct or can you not calculate the nominal rate this way?

Reference no: EM131845391

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