According to the Fisher Effect,if the "Real" Rate of Interest

question 15

Multiple Choice

According to the Fisher effect,if the "real" rate of interest in a country is 4 percent and the expected annual inflation is 9 percent,what would the "nominal" interest rate be?

• A)5 percent
• B)13 percent
• C)9 percent
• D)36 percent
• E)2.25 percent

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Definitions:

Behavior

Actions or reactions of an individual or system in response to external or internal stimuli.

Hereditary

The genetic transmission of characteristics from parents to their offspring.

Nature-Nurture

A debate concerning the relative importance of an individual's innate qualities (nature) versus personal experiences (nurture) in determining or causing differences in physical and behavioral traits.

Behavior

The actions or reactions of an organism, often in response to external stimuli, observable by others.