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Which on is correct? According to the Fisher effect, the nominal interest rate will increase by 5% if the A. expected inflation rate increases by

Which on is correct?

According to the Fisher effect, the nominal interest rate will increase by 5% if the

A. expected inflation rate increases by 5%

B. expected inflation rate decreases by 5%

C. Expected real interest rate increases by 5%

D. actual inflation rate exceeds the expected inflation rate by 5%

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