The Fisher Effect involves which of the items below?
A)Nominal rate,the real rate,and inflation
B)Nominal rate and the real rate only
C)Nominal rate and inflation only
D)Nominal rate,the bond rate,and inflation

Question

Quizplus · Accepted Answer

The Fisher Effect describes the relationship between nominal interest rates, real interest rates, and inflation, indicating that the nominal interest rate is equal to the sum of the real interest rate and the inflation rate.

The Fisher Effect Involves Which of the Items Below