The Fisher effect says that
A. the nominal interest rate adjusts one for one with the inflation rate.
B. the growth rate of the money supply determines the inflation rate.
C. real variables are heavily influenced by the monetary system.
D. All of the above are correct.
Answer:A
The Fisher effect says that
A. the nominal interest rate adjusts one for one with the inflation rate.
 B. the growth rate of the money supply determines the inflation rate.
 C. real variables are heavily influenced by the monetary system.
 D. All of the above are correct.
