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3 votes
The fisher effect

a. says the government can generate revenue by printing money.
b. says there is a one for one adjustment of the nominal interest rate to the inflation rate.
c. explains how higher money supply growth leads to higher inflation.
d. explains how prices adjust to obtain equilibrium in the money market.

User Squeeks
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1 Answer

6 votes
The answer is b. says there is a one for one adjustment of the nominal interest rate to the inflation rate.
Hope it helps :)
User Michael Galos
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