The Fisher Effect predicts that an increase in expected inflation will lower the interest rate on bonds.

Name: The Fisher Effect predicts that an increase in expected inflation will lower the interest rate on bonds.
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The Fisher Effect actually predicts that an increase in expected inflation will lead to an increase in nominal interest rates, as lenders demand higher rates to compensate for the decreased purchasing power of future interest payments.

The Fisher Effect Predicts That an Increase in Expected Inflation