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    Question

    The Fisher Effect assumes that the

    A real interest rate is equal to the nominal interest rate Correct Answer Incorrect Answer
    B nominal interest rate is equal to the real interest rate plus the inflation rate Correct Answer Incorrect Answer
    C inflation rate is equal to the real interest rate Correct Answer Incorrect Answer
    D nominal interest rate is equal to the inflation rate Correct Answer Incorrect Answer

    Solution

    The Fisher Effect assumes that the nominal interest rate is equal to the real interest rate plus the inflation rate

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