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Let R Denote the Real Interest Rate, I Denote the Nominal

Question 63

Multiple Choice

Let r denote the real interest rate, i denote the nominal interest rate, and π\pi denote the rate of inflation. The equation i=r+πi = r + \pi is called:


A) the money supply
B) the quantity equation
C) the Fisher equation
D) the quantity theory of money
E) money neutrality

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