Multiple Choice
The Fisher effect is
A) The one-for-one adjustment of the nominal interest rate to the rate of growth of real GDP.
B) The one-for-one adjustment of the nominal interest rate to the inflation rate.
C) The effect of changes in the velocity of money on the nominal interest rate.
D) The effect of a current account deficit on the nominal interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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