According to the Fisher Effect, If the Real Interest Rate

question 46

True/False

According to the Fisher effect, if the real interest rate is zero, the nominal interest rate must be equal to the expected inflation rate.

---

Definitions:

Promissory Note

A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Contract Of Sale

A legal agreement where the seller agrees to sell and the buyer agrees to buy goods or property under specified terms and conditions.

Payable To

A term indicating the entity to whom funds are directed in financial and legal documents.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee able to transfer it to another holder.