Question: Statement 1 : The Fisher effect is the relationship between nominal returns, real returns, and inflation. Statement 2 : The nominal rate on an investment

Statement 1: The Fisher effect is the relationship between nominal returns, real returns, and inflation. Statement 2: The nominal rate on an investment is the percentage change in the number of dollars you have. The real rate on an investment is the percentage change in how much you can buy with your dollars, in other words, the percentage change in your buying power.Group of answer choicesBoth statements are false.Statement 1 is false and Statement 2 is true.Statement 1 is true and Statement 2 is false.Both statements are true

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