Which one of the following best describes the Fisher hypothesis?
A) Long-term interest rates are based on current inflation rates.
B) Nominal interest rates are inversely related to real rates.
C) Interest rates tend to be higher than inflation rates.
D) Nominal interest rates tend to be relatively constant over time.
E) Future interest rates must be higher than current interest rates.

Question

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The Answer of Which one of the following best describes the Fisher hypothesis?
A) Long-term interest rates are based on current inflation rates.
B) Nominal interest rates are inversely related to real rates.
C) Interest rates tend to be higher than inflation rates.
D) Nominal interest rates tend to be relatively constant over time.
E) Future interest rates must be higher than current interest rates.

Which One of the Following Best Describes the Fisher Hypothesis