From the Fisher equation we see that the nominal interest rate and expected inflation have:
A)An inverse relationship
B) HYPERLINK "" Error! Hyperlink reference not valid.HYPERLINK "" Error! Hyperlink reference not valid.direct but less than one-to-one
C)A relationship which is direct and one-to-one
D)No relationship

Question

Quizplus · Accepted Answer

The Fisher equation states that the nominal interest rate is equal to the real interest rate plus expected inflation, indicating a direct one-to-one relationship between nominal interest rate and expected inflation.

From the Fisher Equation We See That the Nominal Interest