Which of the following is true?

A) The money market model is essentially a model that determines the short-term nominal rate of interest.
B) The money market model is essentially a model that determines the short-term real rate of interest.
C) The loanable funds model is essentially a model that determines the short-term real rate of interest.
D) The loanable funds model is essentially a model that determines the long-term nominal rate of interest.


Answer: A

Economics

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