Money & Bank MCQ
MB Chapter 5
Everything else held constant, when the inflation rate is expected to rise, interest rates will _________; this result has been termed the ________.
Everything else held constant, when the inflation rate is expected to rise, interest rates will _________; this result has been termed the ________.
Everything else held constant, when the inflation rate is expected to rise, interest rates will _________; this result has been termed the ________.
A) fall; Keynes effect
B) fall; Fisher effect
C) rise; Keynes effect
D) rise; Fisher effect
Answer: D
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