The Mathematical Representation (1 + Real Interest Rate)x (1

question 35

Multiple Choice

The mathematical representation (1 + real interest rate) x (1 + inflation rate) = 1 + nominal interest rate
Is of what theory of exchange rate determination?

• A) Fisher effect
• B) Interest Rate Parity
• C) multiple regression
• D) Purchasing Power Parity
• E) None of the above

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