If inflation falls from 6 percent to 4 percent and nothing else-09326
If inflation falls from 6 percent to 4 percent and nothing else changes, then which of the following will happen according to the Fisher effect:
This multiple choice question (MCQ) is related to the book/course
vu eco403 Macroeconomics.
It can also be found in
vu eco403 Final Term - Quiz No.17.
If inflation falls from 6 percent to 4 percent and nothing else changes, then which of the following will happen according to the Fisher effect:
Both the nominal and the real interest rates fall by 2%
Neither the nominal interest rate nor the real interest rate changes
The nominal interest rate falls by 2% and the real interest rate remains constant
The nominal interest rate does not change, but the real interest rate falls by 2%
