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The Fisher Effect refers to Select one: A. the value of bonds rising when interest rates...

The Fisher Effect refers to

Select one:

A. the value of bonds rising when interest rates fall.

B. higher expected inflation changes both bond demand and supply. The shifts in demand and supply reinforce each other to result in higher nominal interest rates.

C. higher interest rates on longer maturity financial instruments.

D. higher expected inflation changes both bond demand and supply, but whether nominal interest rates rise or fall depends on which curve, demand or supply, shifts more.

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