The Fisher equation is given by:
A) $u - \bar { u } = - ( 1 / 2 )\tilde { Y }$
B) $\bar { P } _ { t } ^ { * } = \frac { \bar { M } _ { t } \bar { V } } { \bar { Y } _ { t } }$
C) $\Delta \pi = \bar { v } \tilde { Y } + \bar { o }$
D) $i _ { t } = R _ { t } - \pi _ { t }$
E) $i _ { t } = R _ { t } + \pi _ { t }$

Question

Quizplus · Accepted Answer

The Fisher equation relates nominal interest rates, real interest rates, and inflation, expressed as $i_t = R_t + \pi_t$, where $i_t$ is the nominal interest rate, $R_t$ is the real interest rate, and $\pi_t$ is the inflation rate.

The Fisher Equation Is Given By: A) u−uˉ=−(1/2)Y~u - \bar { u } = - ( 1 / 2 )\tilde { Y }u−uˉ=−(1/2)Y~

The Fisher Equation Is Given By:
A) $u - \bar { u } = - ( 1 / 2 )\tilde { Y }$