(Related to Checkpoint 9.6) (Inflation and interest rates) What would you expect the nominal rate of interest to be if the real rate is 3.5 percent and the expected inflation rate is 7.1 percent? The nominal rate of interest would be \%. (Round to two decimal places.) Clear all Get more help -

Step 1 ：The nominal interest rate is the sum of the real interest rate and the inflation rate.

Step 2 ：So, to find the nominal interest rate, we simply add the real interest rate and the inflation rate.

Step 3 ：Let the real interest rate be \(3.5\%\) and the inflation rate be \(7.1\%\).

Step 4 ：By adding these two rates, we get the nominal interest rate as \(3.5 + 7.1 = 10.6\%\).

Step 5 ：Final Answer: The nominal rate of interest would be \(\boxed{10.6}\%\).