单选题

According to the Fisher effect, an increase in expected inflation will most likely increase:

A、 both nominal and real interest rates.
B、 the nominal interest rate.
C、 the real interest rate.

【正确答案】 B

【答案解析】

The Fisher effect states that the nominal interest rate is the sum of the real rate of interest and the expected rate of inflation over a given time horizon. An increase in expected inflation will result in a higher nominal rate.