The 'Fisher effect' states that nominal interest rates: MCQ with Answer and Explanation

Question

Share Report Error

The 'Fisher effect' states that nominal interest rates:

A. adjust one-for-one with expected inflation

B. equal real interest rate divided by inflation

C. are always zero

D. equal real interest rate minus inflation

Answer: Option A

Solution (By JKSSB Mock Tests)

The Fisher effect states that nominal interest rates rise with expected inflation.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The 'World Trade Organization' replaced GATT in which year?

A. 1993

B. 2000

C. 1995

D. 1997

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
WTO replaced GATT on 1 January 1995.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Fiscal deficit' is financed by:

A. only foreign aid

B. market borrowings and other liabilities

C. only taxes

D. only disinvestment

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Fiscal deficit is financed through market borrowings and other liabilities.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on carbonated water is:

A. 12%

B. 5%

C. 28% plus cess

D. 18%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Carbonated water and aerated drinks attract 28% GST plus cess.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs