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In the Model the Nominal Interest Rate Equals the Nominal

Question 38

Multiple Choice

In the model the nominal interest rate equals the nominal net return on capital, i = (R/P) - In the model the nominal interest rate equals the nominal net return on capital, i = (R/P)  -   , because: A) bonds are zero in the aggregate. B) capital is riskier than bonds. C) bonds are riskier than capital. D) if bonds offered a higher return than capital households would hold no capital. , because:


A) bonds are zero in the aggregate.
B) capital is riskier than bonds.
C) bonds are riskier than capital.
D) if bonds offered a higher return than capital households would hold no capital.

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