Which Is a Correct Version of the Fisher Equation

question 75

Multiple Choice

Which is a correct version of the Fisher equation?

• A) real interest rate = nominal interest rate+inflation rate
• B) nominal interest rate = real interest rate +inflation rate
• C) real interest rate= inflation rate - nominal interest rate
• D) real interest rate - nominal interest rate =inflation rate
• E) nominal interest rate + real interest rate = inflation rate

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Definitions:

Disciplining Strategy

Approaches or methods used to enforce rules and encourage adherence to expected behavior.

Logic And Reason

The application of systematic principles of thinking to evaluate arguments, solve problems, and make decisions.

Effectiveness

The degree to which something is successful in producing a desired or intended result, often measured in terms of output or impact.

Independent Variable

The variable in an experiment or study that is manipulated or changed to observe its effect on a dependent variable, without being influenced by other variables.