The Fisher Equation States That ________

question 103

Multiple Choice

The Fisher equation states that ________.

• A) the real interest rate equals the nominal interest rate plus the expected rate of inflation
• B) the real interest rate equals the nominal interest rate less the expected rate of inflation
• C) the nominal interest rate equals the real interest rate less the expected rate of inflation
• D) the nominal interest rate equals the real interest rate plus the expected rate of inflation

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