We could best describe the O a) loanable funds market as the market where only governments make loans. O b) nominal rate of interest as the inflation-adjusted rate of interest. Og supply of loanable funds as upward sloping, with the slope equaling the rate of inflation. Od) real rate of interest as the inflation-adjusted rate of interest. e) rate of inflation as the nominal interest rate.
We could best describe the O a) loanable funds market as the market where only governments make loans. O b) nominal rate of interest as the inflation-adjusted rate of interest. Og supply of loanable funds as upward sloping, with the slope equaling the rate of inflation. Od) real rate of interest as the inflation-adjusted rate of interest. e) rate of inflation as the nominal interest rate.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 29P: The prime interest rate is the rate that banks charge their best customers. Based on the nominal...
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