Let’s use the Fisher effect to use two known values to learn about the unknown third one. Consider the table, with some values given and some missing. ?i ??Eπ ?EquilibriumrEquilibrium 5% 2% 3% 5% 1% ___ 5% ___ 8% ___ 10% 2% 6% ___ 2% 0% -2% ___ Compute the missing values in the table. ?=5%,??=1%,?Equilibrium=i=5%,Eπ=1%,rEquilibrium= % ?=5%,?Equilibrium=8%,??=i=5%,rEquilibrium=8%,Eπ= % ??=10%,?Equilibrium=2%,?=Eπ=10%,rEquilibrium=2%,i= % ?=6%,?Equilibrium=2%,??=i=6%,rEquilibrium=2%,Eπ= % ?=0%,??=−2%,?Equilibrium=

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Chapter5: Business And Economic Forecasting
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Let’s use the Fisher effect to use two known values to learn about the unknown third one. Consider the table, with some values given and some missing.

?i ??Eπ ?EquilibriumrEquilibrium
5% 2% 3%
5% 1% ___
5% ___ 8%
___ 10% 2%
6% ___ 2%
0% -2% ___









Compute the missing values in the table.

?=5%,??=1%,?Equilibrium=i=5%,Eπ=1%,rEquilibrium=
 
%
?=5%,?Equilibrium=8%,??=i=5%,rEquilibrium=8%,Eπ=
 
%
??=10%,?Equilibrium=2%,?=Eπ=10%,rEquilibrium=2%,i=
 
%
?=6%,?Equilibrium=2%,??=i=6%,rEquilibrium=2%,Eπ=
 
%
?=0%,??=−2%,?Equilibrium=
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