Economics

CFA Level 2 · 5 questions

economics1 / 5

Question 1Easy

Which of the following best describes the relationship between inflation and the nominal interest rate according to the Fisher equation?

A.The nominal interest rate equals the real interest rate plus the expected inflation rateB.The nominal interest rate equals the real interest rate minus the expected inflation rateC.The nominal interest rate is unaffected by inflation expectationsD.The nominal interest rate equals the inflation rate divided by the real interest rate

Select an answer and check it