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The Fisher Relationship May Be Described by the Following Equation RR

Question 17

Multiple Choice

The Fisher relationship may be described by the following equation in which RR is the nominal rate of interest, rr is the real rate of interest, and ii is the inflation rate.


A) i=r+Ri = r + R
B) r=R+i+irr = R + i + i r .
C) 1+i=1+r1+R1 + i = \frac { 1 + r } { 1 + R }
D) 1+r=1+R1+i1 + r = \frac { 1 + R } { 1 + i }
E) 1+r=1+i1+R1 + r = \frac { 1 + i } { 1 + R }

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