Multiple Choice
According to the Fisher hypothesis, if the real interest rate is 5 percent and the inflation rate rises from 2 percent to 4 percent, then the nominal interest rate will _____percentage points and the real interest rate will change by ______percentage points.
A) rise by 0; ?2
B) fall by 2; ?2
C) rise by 2; 0
D) fall by 1; 1
Correct Answer:
Verified
Correct Answer:
Verified
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