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The Cash Rate Is Determined by Equilibrium in the Market

Question 86

Multiple Choice

The cash rate is determined by equilibrium in the market for . The cash rate .


A) loanable funds; equals the real interest rate minus the inflation rate
B) loanable funds; equals the real interest rate
C) reserves; is the rate that sets the quantity of reserves demanded equal to the quantity of reserves supplied
D) reserves; equals the real interest rate minus the inflation rate

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