Which One of the Following Best Describes the Fisher Hypothesis

question 24

Multiple Choice

Which one of the following best describes the Fisher hypothesis?

• A)long-term interest rates are based on current inflation rates
• B)nominal interest rates are inversely related to real rates
• C)interest rates tend to be higher than inflation rates
• D)nominal interest rates tend to be relatively constant over time
• E)future interest rates must be higher than current interest rates

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