The Real Interest Rate ________ Inflation ________

question 52

Multiple Choice

The real interest rate ________ inflation ________.

• A)subtracted from the nominal rate yields expected;according to the Fisher equation
• B)moves one for one,in the long run,with expected;according to the classical dichotomy
• C)always increases with;but because of the Fisher effect lower expected inflation ensues
• D)all of the above
• E)none of the above

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