The Fisher Relation States That

question 20

Multiple Choice

The Fisher relation states that

• A) the nominal interest rate equals the anticipated future inflation rate minus the real interest rate.
• B) the real interest rate equals minus the anticipated future inflation rate plus the nominal interest rate.
• C) the nominal interest rate equals the real interest rate.
• D) the real interest rate equals the nominal interest rate plus the anticipated future inflation rate.
• E) the anticipated future inflation rate equals the nominal interest rate plus the real interest rate.

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