The ________ states that the nominal interest rate equals the real interest rate plus the expected rate of inflation.
A)Fisher equation
B)Keynesian equation
C)Monetarist equation
D)Marshall equation

Question

Quizplus · Accepted Answer

The statement in the question refers to the Fisher equation, which expresses the relationship between the nominal interest rate, the real interest rate, and the expected rate of inflation. The other options listed are not applicable for this concept.

The ________ States That the Nominal Interest Rate Equals the Real