Which of the following are true about the long-run nominal interest rate i? Select one or more: Since prices, P, rise, so will rº and therefore i. O b. i is only affected by the CB's money supply policy. c. We cannot determine i without further information about money demand. O d. i is unaffected by any government policy. In the long-run, i is determined only by the money market equilibrium. i is 2% higher than the long-run real interest rate r. O e. f.
Which of the following are true about the long-run nominal interest rate i? Select one or more: Since prices, P, rise, so will rº and therefore i. O b. i is only affected by the CB's money supply policy. c. We cannot determine i without further information about money demand. O d. i is unaffected by any government policy. In the long-run, i is determined only by the money market equilibrium. i is 2% higher than the long-run real interest rate r. O e. f.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which of the following are true about the long-run nominal interest rate i?
Select one or more:
а.
Since prices, P, rise, so will t° and therefore i.
b. i is only affected by the CB's money supply policy.
С.
We cannot determine i without further information about money demand.
d. i is unaffected by any government policy.
In the long-run, i is determined only by the money market equilibrium.
е.
f.
i is 2% higher than the long-run real interest rate r.
O O O O O
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