The real interest rate is approximately equal to
A) the growth in real GDP.
B) the nominal interest rate.
C) the nominal interest rate plus the inflation rate.
D) the nominal interest rate minus the inflation rate.
E) one divided by the nominal interest rate minus the inflation rate.
Correct Answer:
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Q31: The real return on bonds is
A) R.
B)
Q32: The monetary intertemporal model assumes that
A) the
Q33: The nominal money supply is
A) exogenous.
B) horizontal
Q34: If the nominal interest rate rises,
A) there
Q35: The nominal money demand is defined as
A)
Q37: The Fisher effect is
A) the effect of
Q38: Which of the following is an example
Q39: Real money demand is a function of
A)
Q40: In the monetary intertemporal model, the supply
Q41: To increase the nominal money supply, the
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