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4 October, 04:32

The concept that the nominal interest rate reflects the real interest rate an dteh expected rate of inflation is known as: 1. money neutrality. 2. inflation effect 3. fischer effect?

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Answers (2)
  1. 4 October, 06:04
    0
    the right answer is A

    Explanation:

    In monetary neutrality wages, prices are still proportional to the supply of money in the country
  2. 4 October, 06:19
    0
    3. Fisher effect

    Explanation:

    According to the Fisher Effect the real interest rate equals the Nominal Interest rate minus the expected Inflation rate. For example if they say you will have 5% as the Nominal Interest rate per year and in that year the expected Inflation rate is 3%, the Real interest rate will be 2% at the and of that year
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