It has been suggested that the Fisher theory is a tautology. If the real rate of interest

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It has been suggested that the Fisher theory is a tautology. If the real rate of interest is defined as the difference between the nominal rate and the expected inflation rate, then the nominal rate must equal the real rate plus the expected inflation rate. In what sense is Fisher’s theory not a tautology?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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