The Fisher effect formula is comprised of three components. These three components are:

A) Nominal, real and inflation rates
B) Real, inflation and compounding rates
C) Real, inflation, and effective rates
D) Real, nominal and effective rates
E) Nominal, effective and inflation rates

Fisher Effect

A theory proposing that the real interest rate is equal to the nominal interest rate minus the expected inflation rate, emphasizing the relationship between inflation and real and nominal interest rates.

Nominal

Referring to amounts or prices that have not been adjusted for inflation, representing face value rather than real value.