Let r denote the real interest rate,i denote the nominal interest rate,and
Denote the rate of inflation.The equation
Is called:
A)the money supply.
B)the quantity equation.
C)the Fisher equation.
D)the quantity theory of money.
E)money neutrality.

Question

Let r denote the real interest rate,i denote the nominal interest rate,and 
Denote the rate of inflation.The equation 
Is called:
A)the money supply. 
B)the quantity equation. 
C)the Fisher equation. 
D)the quantity theory of money. 
E)money neutrality.

Quizplus · Accepted Answer

The equation 11ea895d_4d6e_00e0_8397_9d4a08e9c6c1_TB4305_11 is called the Fisher equation, which relates the nominal interest rate, the real interest rate, and the rate of inflation. It is named after economist Irving Fisher, who developed the formula. The other options are not directly related to the Fisher equation.

Let R Denote the Real Interest Rate,i Denote the Nominal