Question: According to the Fisher effect, a decrease in the rate of inflation will: A) increase the real rate but not affect the nominal rate. B)

According to the Fisher effect, a decrease in the rate of inflation will:

A) increase the real rate but not affect the nominal rate.

B) decrease the nominal rate but not affect the real rate.

C) not affect either the real or the nominal rate.

D) decrease both the nominal and the real rate.

E) increase the nominal rate but not affect the real rate.

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