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The Fisher Equation States That

Question 87

Multiple Choice

The Fisher equation states that


A) the nominal interest rate equals the real interest rate plus the expected rate of inflation.
B) the real interest rate equals the nominal interest rate less the expected rate of inflation.
C) the nominal interest rate equals the real interest rate less the expected rate of inflation.
D) both A and B of the above are true.
E) both A and C of the above are true.

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