Which of the following is true? Question 37Answer a. The loanable funds model is essentially a model that determines the short-term real rate of interest. b. The money market model is essentially a model that determines the short-term real rate of interest. c. The money market model is essentially a model that determines the short-term nominal rate of interest. d. The loanable funds model is essentially a model that determines the long-term nominal rate of interest.
Which of the following is true? Question 37Answer a. The loanable funds model is essentially a model that determines the short-term real rate of interest. b. The money market model is essentially a model that determines the short-term real rate of interest. c. The money market model is essentially a model that determines the short-term nominal rate of interest. d. The loanable funds model is essentially a model that determines the long-term nominal rate of interest.
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 9P
Related questions
Question
![Which of the following is true?
Question 37Answer a. The loanable
funds model is essentially a model
that determines the short-term real
rate of interest. b. The money market
model is essentially a model that
determines the short-term real rate
of interest. c. The money market
model is essentially a model that
determines the short-term nominal
rate of interest. d. The loanable
funds model is essentially a model
that determines the long-term
nominal rate of interest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd2b5059-317a-4e6b-80b9-6c939ba645b8%2Fc72bcdbe-f804-4323-8300-6ba6fd983d8b%2F2twt03d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following is true?
Question 37Answer a. The loanable
funds model is essentially a model
that determines the short-term real
rate of interest. b. The money market
model is essentially a model that
determines the short-term real rate
of interest. c. The money market
model is essentially a model that
determines the short-term nominal
rate of interest. d. The loanable
funds model is essentially a model
that determines the long-term
nominal rate of interest.
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