The Fisher Effect Is the Finding That

question 42

Multiple Choice

The Fisher effect is the finding that:

• A)changes in real bond yields are associated with changes in the inflation rate
• B)changes in real bond yields are associated with changes in nominal bond yields
• C)changes in nominal bond yields are associated with changes in the expected inflation rate
• D)changes in nominal bond yields are associated with changes in real bond yields
• E)yields and inflation are independent of one another.