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Author Question: The above table has the demand and supply schedules for money. Real GDP increases and, as a result, ... (Read 64 times)

yoooooman

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on: Jun 29, 2018
The above table has the demand and supply schedules for money. Real GDP increases and, as a result, the demand for money increases by 0.1 trillion at each level of the nominal interest rate. The new equilibrium interest rate is
 
  A) 5 percent. B) 2 percent. C) 10 percent. D) 3 percent. E) 7 percent.

Question 2

The Fed directly controls long-term interest rates.
 
  Indicate whether the statement is true or false


jointhecircus

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

FALSE


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