The Fisher effect states that the _________ rate is made up of a real required rate of return and an inflation premium.

Question

Quizplus · Accepted Answer

The Fisher effect refers to the relationship between nominal interest rates, real interest rates, and inflation. Specifically, it states that the nominal interest rate is equal to the sum of the real required rate of return and the expected inflation premium. So, the correct answer is C - nominal interest rate.

The Fisher Effect States That the _________ Rate Is Made