What determines nominal interest rates in the long run

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Please explain the following questions regarding the Fisher Effect.

(a) Derive and explain the Fisher Effect

(b) Is the Fisher Effect more likely to hold in the short-run of the long-run, and explain why.

(c) What are the implications of the Fisher Effect for real interest rate differentials between countries.

(d) What determines nominal interest rates in the long run?

Reference no: EM131597823

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