Which of the following summarizes the Fisher Effect?
A. Nominal interest rates will rise with unexpected inflation.
B. Nominal interest rates will rise with expected inflation.
C. Real interest rates will rise with unexpected inflation.
D. Real interest rates will rise with expected inflation.
Ans: B. Nominal interest rates will rise with expected inflation.
Economics
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The short-run Phillips curve shifts upward whenever:
a. inflation rises. b. a negative supply shock occurs. c. unemployment rises. d. all of the above.
Economics
Goods having a negative calculated income elasticity are
a. superior goods b. producers' goods c. nondurable goods d. inferior goods e. none of the above
Economics