The Fisher Effect

question 126

Multiple Choice

The Fisher effect

• A)says the government can generate revenue by printing money.
• B)says there is a one for one adjustment of the nominal interest rate to the inflation rate.
• C)explains how higher money supply growth leads to higher inflation.
• D)explains how prices adjust to obtain equilibrium in the money market.

---

Definitions:

Ego Identity

An individual's sense of self, formed through both personal continuity and social recognition, and is central to their personality.

Learned Responses

Behaviors developed as a result of exposure to environmental stimuli and the consequent learning from the outcomes of those behaviors.

Shaping

A method of behavior training in which positive reinforcement is used to produce successive approximations of a desired behavior.

Heredity

The genetic transmission of characteristics, traits, or diseases from parents to offspring.