ANSWERS: 1
  • The Fisher Effect is a theory describing the long-run relationship between inflation and interest rates. http://www.investopedia.com/terms/f/fishereffect.asp This equation tells us that, all things being equal, a rise in a country's expected inflation rate will eventually cause an equal rise in the interest rate (and vice versa). http://www.investopedia.com/terms/f/fishereffect.asp

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