The Fisher relationship may be described by the following equation in which R is the nominal rate of interest, r is the real rate of interest, and i is the inflation rate.
A) i = r + R
B) 1 + i =
C) 1 + r =
D) 1 + r =
E) r = R + i + ir.

Question

The Fisher relationship may be described by the following equation in which R is the nominal rate of interest, r is the real rate of interest, and i is the inflation rate.
A) i = r + R 
B) 1 + i = 
C) 1 + r = 
D) 1 + r = 
E) r = R + i + ir.

Quizplus · Accepted Answer

The Answer of The Fisher relationship may be described by the following equation in which R is the nominal rate of interest, r is the real rate of interest, and i is the inflation rate.
A) i = r + R 
B) 1 + i = 
C) 1 + r = 
D) 1 + r = 
E) r = R + i + ir.

The Fisher Relationship May Be Described by the Following Equation