The Fisher Effect Is

question 29

Multiple Choice

The Fisher effect is

• A) The one-for-one adjustment of the nominal interest rate to the rate of growth of real GDP.
• B) The one-for-one adjustment of the nominal interest rate to the inflation rate.
• C) The effect of changes in the velocity of money on the nominal interest rate.
• D) The effect of a current account deficit on the nominal interest rate.

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