Answer:
A. The expected real rate of interest increases by one percentage point for each percentage change in expected inflation.
Explanation:
The Fisher effect is an economic term referred to as the relationship between real and nominal interest rates with inflation. This theory explains that the real interest rate is equal to the nominal interest rate minus the expected inflation rate. In other words, if nominal rates do not increase at the same rate as inflation, then real interest rates will fall while inflation increases.
Answer:
What Is Capitalism? Capitalism is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand in the general market—known as a market economy—rather than through central planning—known as a planned economy or command economy.
Explanation:
<span>Behaviorists attempted to explain thinking in the narrow terms of
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stimulus and response".
Behaviorism which is also called behavioral psychology is a
hypothesis of learning in view that all of our practices are procured through
molding or conditioning. Conditioning happens through communication and
interacting with nature and surroundings. Behaviorists trust that our reactions
to environmental
stimuli are what shape our activities.
