Which of the following is a valid representation of the Fisher effect? A)i = E (INF)+ i_R B)i_R = E (INF)+ i C)E (INF)= i + i_R D)None of these are correct.

Question

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The Fisher effect states that the nominal interest rate (i) is equal to the expected inflation rate (E(INF)) plus the real interest rate (iR). Therefore, the correct answer is A: i = E(INF) + iR.

Which of the Following Is a Valid Representation of the Fisher