Final answer:
The real interest rate according to the international Fisher effect can be found by subtracting the rate of inflation from the nominal interest rate.
Step-by-step explanation:
The real interest rate according to the international Fisher effect can be found by subtracting the rate of inflation from the nominal interest rate. The real interest rate is a more accurate measure of the cost of borrowing or the return on investment, as it takes into account the impact of inflation. For example, if the nominal interest rate is 5% and the rate of inflation is 2%, the real interest rate would be 3%.