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In the Long Run

Question 2

Multiple Choice

In the long run:


A) the federal funds rate equals the 10-year bond rate
B) the marginal product of capital is greater than the real interest rate
C) the marginal product of capital equals the nominal interest rate
D) the marginal product of capital equals the real interest rate
E) the marginal product of capital is less than the real interest rate

Correct Answer:

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