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Let I Be the Nominal Interest Rate,r^e Is Real Interest

Question 10

Question 10

Multiple Choice

Let i be the nominal interest rate,r^e is real interest rate,and π^e is the expected rate of inflation.The Fisher equation is:

A) i=r^e + π^e
B) i=r^e - π^e
C) i=r^e × π^e
D) i=r^e ÷ π^e

Correct Answer:

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