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Fisher Formula

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The Fisher Effect formula shows the relationship between nominal and real interest rates. Here is a rundown of what the formula is and how to apply it to rates of change in nominal and real values. I’ve also made a new html5 review game (mobile compatible) with 15 questions and explanations to help students practice with the Fisher equation.  Good luck on your next exam!
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**AP©, Advanced Placement Program©, and College Board© are registered trademarks of the College Board, which was not involved in the production of, and does not endorse, this material. IB is a registered trade mark of International Baccalaureate Organization which was also not involved in the production of and does not endorse this material.**

I would like to acknowledge the work of Dick Brunelle and Steven Reff from Reffonomics.com whose work inspired many of the review games on this site. I would also like to thank Francis McMann, James Chasey, and Steven Reff who taught me how to be an effective AP Economics teacher at AP summer institutes; as well as the countless high school teachers, and college professors from the AP readings, economics Facebook groups, and #econtwitter. 

  
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