Let $\pi$ = inflation rate, r = real interest rate, and i = nominal interest rate. Which of the following statements is (are) TRUE?

Name: Let $\pi$ = inflation rate, r = real interest rate, and i = nominal interest rate. Which of the following statements is (are) TRUE?
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Question

Let  $\pi$ = inflation rate, r = real interest rate, and i = nominal interest rate. Which of the following statements is (are) TRUE?

Quizplus · Accepted Answer

The Fisher equation states that the nominal interest rate (i) is approximately the sum of the real interest rate (r) and the inflation rate ($\pi$), i.e., i = r + $\pi$. Therefore, rearranging gives r = i - $\pi$.

Let π\piπ = Inflation Rate, R = Real Interest Rate, and I

Let $\pi$ = Inflation Rate, R = Real Interest Rate, and I