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The Fisher Effect assumes that the. O real interest rate is equal to the nominal interest rate 0 nominal interest rate is equal to the

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The Fisher Effect assumes that the. O real interest rate is equal to the nominal interest rate 0 nominal interest rate is equal to the real interest rate plus the inflation rate P | ) inflation rate is equal to the real interest rate ) nominal interest rate is equal to the inflation rate L | | ) nominal interest rate is lower than the inflation rate

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