Which One of the Following Best Fits the Fisher Hypothesis

question 107

Multiple Choice

Which one of the following best fits the Fisher hypothesis?

• A)Long-term interest rates are based on current inflation rates.
• B)Nominal interest rates are inversely related to real rates.
• C)Interest rates tend to be higher than inflation rates.
• D)Nominal interest rates tend to be relatively constant over time.
• E)Future interest rates must be higher than current interest rates.

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