Answer:
Soild.
Explanation:
I passed this class already.
Repeated all the time and sometimes writ it down to help remember it
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:
B. spillover effect.
Explanation:
Spillover effect: The term spillover is defined as the propensity of an individual's emotions that get affected in regards to the presence of another person around him or her feels.
Example: A boy who got good grades in his mathematics examination, was full of joy and happiness as he has worked hard in the subject. When he returned home his parents saw him happy and they too felt happy because of their child's joy and happiness.
In the question above, the statement signifies the spillover effect.