#20.Which of the following statements is correct? aThe interest rate that is usually reported is the interest rate that has been corrected for inflation.bThe supply of, and demand for, loanable funds depend on the real (rather than nominal) interest rate.cIf the nominal interest rate has decreased and the real interest rate has also decreased, then the inflation rate must have decreased as well.dAll of the above are correct.

c If the nominal interest rate has decreased and the real interest rate has also decreased,…

Answered: 20.Which of the following statements is…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 13P

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#20.Which of the following statements is correct?

a	The interest rate that is usually reported is the interest rate that has been corrected for inflation.
b	The supply of, and demand for, loanable funds depend on the real (rather than nominal) interest rate.
c	If the nominal interest rate has decreased and the real interest rate has also decreased, then the inflation rate must have decreased as well.
d	All of the above are correct.

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