the economist irving fisher after whom the fisher effect is named explained why inte 637896

1) The economist Irving Fisher, after whom the Fisher effect is named, explained why interest rates ________ as the expected rate of inflation ________, everything else held constant.

A) rise; increases

B) rise; stabilizes

C) fall; stabilizes

D) fall; increases

2) Everything else held constant, during a business cycle expansion, the supply of bonds shifts to the ________ as  businesses perceive more profitable investment opportunities, while the demand for bonds shifts to the ________ as a result of the increase in wealth generated by the economic expansion.

A) right; left

B) right; right

C) left; left

D) left; right