What Is the Basis of the Relationship Between the Fisher

question 57

Multiple Choice

What is the basis of the relationship between the Fisher effect and the loanable funds theory?

• A)savers' desire to maintain the existing real rate of interest
• B)borrowers' desire to achieve a positive real rate of interest
• C)savers' desire to achieve a negative real rate of interest
• D)borrowers' desire to achieve a positive real rate of interest AND savers' desire to achieve a negative real rate of interest

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