The Fisher effect states that the Answer choices
A. nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.
B. real interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.
C. nominal interest rate is equal to the current inflation rate plus the equilibrium real interest rate.
D. nominal interest rate is equal to the expected inflation rate minus the equilibrium nominal interest rate.

Garcia industries has sales of $200,000 and accounts receivable of $18,500, and it gives its customers 25 days to pay. the industry average dso is 27 days, based on a 365-day year. if the company changes its credit and collection policy sufficiently to cause its dso to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant? a. $241.45b. $254.16c. $267.54d. $281.62e. $296.44