Which one of the following refers to the relationship between nominal returns,real returns,and inflation?

Question

Quizplus · Accepted Answer

The Fisher effect refers to the relationship between nominal returns (the return on an investment unadjusted for inflation) and real returns (the return on an investment adjusted for inflation). The Fisher effect states that real interest rates equal nominal interest rates minus the expected inflation rate.

Which One of the Following Refers to the Relationship Between