QUESTION 8 Data indicate that the Fisher effect: a. holds in the short run. b. holds in the long run. c. holds in the long run and the short run. d. doesn't hold in the short run but holds in the long run.
QUESTION 8 Data indicate that the Fisher effect: a. holds in the short run. b. holds in the long run. c. holds in the long run and the short run. d. doesn't hold in the short run but holds in the long run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 8
Data indicate that the Fisher effect:
O
O
a. holds in the short run.
b. holds in the long run.
c. holds in the long run and the short run.
d. doesn't hold in the short run but holds in the long run.
QUESTION 9
If inflation in the United States is 4% per year and in the United Kingdom it is 8% per year, and interest rate in the
United Kingdom is 6%, then the Fisher effect predicts that the interest rate in the United States is:
a. 2%.
b.4%.
c. 6%.
d. 8%.
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