The Fisher Equation Implies That If Expected Inflation Is Higher

Multiple Choice

The Fisher equation implies that if expected inflation is higher than actual inflation,then:

A) the real interest rate will be equal to the equilibrium interest rate.
B) the real interest rate will be greater than the equilibrium interest rate.
C) the real interest rate will be less than the equilibrium interest rate.
D) both the real interest rate and equilibrium interest rate will become undetermined.