In Its Approximate Form the Fisher Effect May Be Written

question 13

Multiple Choice

In its approximate form the Fisher effect may be written as ________, where i = the nominal rate of interest, r = the real rate of return and ? = the expected rate of inflation.

• A) i = (r)(?)
• B) i = r + ? + (r)(?)
• C) i = r + ?
• D) i = r + 2?