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Which of the Below IS Considered by Fisher's Theory

Question 33

Multiple Choice

Which of the below IS considered by Fisher's theory.


A) Fisher's theory takes into account the power of the government (in concert with depository institutions) to create money.
B) Fisher's theory considers the government's often large demand for borrowed funds, which is frequently immune to the level of the interest rate
C) Fisher's theory takes into account the possibility that individuals and firms might invest in cash balances.
D) Fisher's theory considers an interest rate on loans that embodies no premium for default risk because borrowing firms are assumed to meet all obligations.

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