According to the Fisher Effect, an Increase in the Rate

question 14

Multiple Choice

According to the Fisher effect, an increase in the rate of inflation from 3 per cent to 4 per cent will _____.

• A) increase the nominal interest rate by 7 percentage points
• B) increase the real interest rate by 3 percentage points
• C) decrease the nominal interest rate by 3 percentage points
• D) increase the nominal interest rate by 1 percentage point

---

Definitions:

Brain Wave Patterns

Electrical oscillations in the brain that can be measured and are associated with different states of brain function.

Electroencephalography

A non-invasive method used to record the electrical activity of the brain through electrodes placed on the scalp.

CT Scan

A diagnostic medical imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to create cross-sectional images of specific areas of a scanned object.

Magnetic Resonance Imaging

A medical imaging technique used to visualize detailed internal structures using powerful magnetic fields and radio waves; commonly known as MRI.