In the long run the real interest rate is determined by ________, and in the short-run the Federal Reserve can control the real interest rate by setting the nominal interest rate if inflation adjusts ________.
A. the Federal Reserve; slowly
B. the Federal Reserve; to equal the increase in the money supply
C. saving and investment; slowly
D. saving and investment; quickly
Answer: C
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Which of the following is a characteristic of perfect competition?
a. substantial barriers to entry b. homogeneous products c. few sellers d. each firm has significant control over the market
Investing $2 million of your own money in your business is an example of an _______ cost.
Fill in the blank(s) with the appropriate word(s).
Explain the determinants of investment. Include in your answer an explanation of how a change in each determinant affects investment
What will be an ideal response?
Which of the following would be considered an implicit cost of operating a business?
A) advertising expenses B) wages paid to workers C) a normal rate of return for investors D) any explicit cost