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The Fisher effect states that: O 1. the nominal rate of interest is unaffected by the change in expected inflation. O 2. the nominal rate

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The Fisher effect states that: O 1. the nominal rate of interest is unaffected by the change in expected inflation. O 2. the nominal rate of interest is unaffected by the change in unexpected inflation. O 3. the expected real rate of interest is unaffected by the change in expected inflation. O 4. the expected real rate of interest increases by one percentage point for each percentage change in expected inflation

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