According to the Fisher Effect, Expectations of Higher Inflation Cause

question 51

Multiple Choice

According to the Fisher effect, expectations of higher inflation cause savers to require a ____ on savings. ​

• A)higher nominal interest rate
• B)higher real interest rate
• C)lower nominal interest rate
• D)lower real interest rate

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Definitions:

Express Warranty

A written guarantee provided by a seller about the quality or nature of a product, promising specific standards or conditions.

Implied Warranty

A legal assumption in commerce that goods are reasonably fit for the general purpose for which they are sold, even if not expressly stated.

Operation of Law

A way in which rights or liabilities are automatically transferred or changed due to existing legal rules, rather than the action of the parties.

Implied Warranty

An unwritten and unspoken guarantee that a product or service will meet a minimum level of quality and will perform as expected, even though it is not explicitly stated in a contract.