Which of the following statements most accurately describes the "Fisher Effect"?

a. The Fisher Effect states that when the rate at which the money supply grows is increased, nominal interest rates fall.
b. The Fisher Effect states that when the the rate at which the money supply grows is increased, real interest rates fall.
c. The Fisher Effect states that when the rate at which the money supply grows is increased, nominal interest rates rise.
d. The Fisher Effect states that when the rate at which the money supply grows is increased real interest rates rise.
e. None of the above statements are correct.


c. The Fisher Effect states that when the rate at which the money supply grows is increased, nominal interest rates rise.

Economics

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The asset demand for money is related to which function of money?

A) standard of deferred payment B) store of value C) medium of exchange D) unit of accounting

Economics

The federal government's abilities to tax during war- and peace-times are constrained by

(a) the need to be re-elected by the voting population. (b) the interests of the non-voting population. (c) the U.S. Constitution. (d) the protected rights of state and local governments to tax.

Economics

Assume the graph shown represents the market for pizzas sold in an hour. If the original equilibrium was D and S1. Which of the following is true when S1 shifted to S2?



A. Equilibrium price decreased by $5.
B. Equilibrium quantity increased by 20.
C. Equilibrium price increased by $5.
D. Equilibrium quantity increased by 30.

Economics

Plurality voting ___________ the ideal voting-system criteria.

A. meets all B. fails one of C. fails two of D. fails all of

Economics