According to the Fisher equation, the real interest rate is:
A) $R _ { t } = i _ { t } - \pi _ { t }$
B) $R _ { t } = \bar { r } - ( 1 / 2 ) \tilde { Y }$
C) $R _ { t } = \bar { c } + \bar { r } - \bar { b } \tilde { Y }$
D) $R _ { t } = \overline { \boldsymbol { v } } \tilde { Y } + \bar { o }$
E) $R _ { t } = i _ { t } + \pi _ { t }$

Question

Quizplus · Accepted Answer

The Fisher equation states that the real interest rate is equal to the nominal interest rate minus the expected inflation rate.

According to the Fisher Equation, the Real Interest Rate Is Rt=it−πtR _ { t } = i _ { t } - \pi _ { t }Rt​=it​−πt​

According to the Fisher Equation, the Real Interest Rate Is $R _ { t } = i _ { t } - \pi _ { t }$