The Fisher equation states that the
A) expected real interest rate minus the expected inflation rate equals the nominal interest rate.
B) expected inflation rate plus the nominal interest rate equals the expected real interest rate.
C) nominal interest rate equals the expected real interest rate plus the expected inflation rate.
D) expected real interest rate equals the expected inflation rate minus the nominal interest rate.
C
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Explain the "shoe-leather" costs of inflation
What will be an ideal response?
Critics of government-run employment agencies and public training programs argue that the private market is better at matching workers and jobs than the government is
a. True b. False Indicate whether the statement is true or false
Granting a pharmaceutical company a patent for a new medicine will lead to (i) a product that is priced higher than it would be without the exclusive rights. (ii) incentives for pharmaceutical companies to invest in research and development. (iii) higher quantities of output than without the patent
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)
The opportunity cost of a decision is the
A) value of the best alternative not chosen. B) value of all the alternatives not chosen. C) cost of making the wrong choice. D) cost incurred by others who are unhappy with your decision.