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According to the Fisher Equation, the Real Interest, Rt, Equals π\pi

Question 21

Multiple Choice

According to the Fisher equation, the real interest, rt, equals the nominal interest rate, it, minus the expected inflation rate, which is written as:


A) Et π\pi t
B) Et π\pi t+1
C) Et+1 π\pi t
D) Et + 1 π\pi t + 1

Correct Answer:

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