The Fisher equation implies that an increase in the nominal rate of interest relative to the real rate indicates that ________

A) inflation is expected to rise
B) inflation is expected to decrease
C) the real cost of borrowing has increased
D) the real cost of borrowing has decreased
E) none of the above

A

Economics

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Marginal cost:

a) is always less than price. b) is the minimum price a producer to cause him to offer one more unit of a good for sale. c) decreases as more is produced. d) may be negative. e) is greater than price

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A tax imposed at every stage of production is a

a. value-added tax. b. lump sum tax. c. corrective tax. d. regressive tax.

Economics