Let R Denote the Real Interest Rate, I Denote the Nominal

question 107

Multiple Choice

Let R denote the real interest rate, i denote the nominal interest rate, and $\pi$ denote the rate of inflation. The equation i = R + $\pi$ is called:

• A) the money supply.
• B) the quantity equation.
• C) the Fisher equation.
• D) the quantity theory of money.
• E) money neutrality.

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