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Gross Domestic Product Requires

Question 24

Multiple Choice

Gross domestic product requires


A) inflation equal to the nominal rate of interest,which means lending equals borrowing.
B) investment,which requires borrowing,which requires a functioning loanable funds market.
C) borrowing,which requires the real rate of interest to be equal to inflation,which requires a functioning loanable funds market.
D) borrowing,which requires sufficiently high interest rates to prevent free riders.
E) investment,which requires borrowing,which requires sufficiently low interest rates to prevent free riders.

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