On a graph that depicts the market for loanable funds, the nominal interest rate is measured along the vertical axis.

Name: On a graph that depicts the market for loanable funds, the nominal interest rate is measured along the vertical axis.
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Question

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On a graph that depicts the market for loanable funds, the real interest rate is typically measured along the vertical axis, not the nominal interest rate. The real interest rate adjusts the nominal rate for the effects of inflation.

On a Graph That Depicts the Market for Loanable Funds