According to the Fisher Effect,a Decrease in the Rate of Inflation

question 89

Multiple Choice

According to the Fisher effect,a decrease in the rate of inflation will

• A)increase the real rate but not affect the nominal rate.
• B)decrease the nominal rate but not affect the real rate.
• C)not affect either the real or the nominal rate.
• D)decrease both the nominal and the real rate.
• E)increase the nominal rate but not affect the real rate.

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