What kind of economic variables are the interest rates when adjusted for the effects of inflation?
A) nominal
B) real
C) menu
D) Fisher

Question

Quizplus · Accepted Answer

When adjusted for the effects of inflation, the interest rates become real, as they reflect the actual borrowing or lending costs, rather than just the nominal or stated rates. The term Fisher refers to the Fisher effect, which explains the relationship between inflation and nominal interest rates. Menu is not a relevant term in this context.

What Kind of Economic Variables Are the Interest Rates When