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

Question 107

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 + π\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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