The economist Irving Fisher, after whom the Fisher effect is named, explained why interest rates ________ as the expected rate of inflation ________, everything else held constant.

The economist Irving Fisher, after whom the Fisher effect is named, explained why interest rates ________ as the expected rate of inflation ________, everything else held constant.



A) rise; increases
B) rise; stabilizes
C) fall; stabilizes
D) fall; increases




Answer: A


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