Author Question: If expected inflation declines by 2, what should happen to nominal interest rates according to the ... (Read 123 times)

@Brianna17 · **on:** Jun 30, 2018

If expected inflation declines by 2, what should happen to nominal interest rates according to the Fisher effect?

A) rise by 2
B) fall by 2
C) be cut in half
D) double in size

Question 2

An options contract

A) confers the rights to buy or sell an underlying asset at a predetermined price by a predetermined time.
B) is another name for a futures contract.
C) may be written for debt instruments, but not equities.
D) may be written for equities, but not for debt instruments.