We could best describe:
A) the nominal rate of interest as the inflation-adjusted rate of interest.
B) the real rate of interest as the inflation-adjusted rate of interest.
C) the rate of inflation as the nominal interest rate.
D) the loanable funds market as the market where only governments make loans.
E) the supply of loanable funds as upward sloping, with the slope equaling the rate of inflation.
Correct Answer:
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