Asked by Ishmail Mgwena on Apr 24, 2024
Provide an appropriate definition of Fisher effect.
Fisher Effect
An economic theory stating that the real interest rate is independent of monetary measures, especially the nominal interest rate and the expected inflation rate.
- Comprehend the Fisher effect principle and its consequences on real interest rates and inflation.
Learning Objectives
- Comprehend the Fisher effect principle and its consequences on real interest rates and inflation.