In the Keynesian range, the: a. Aggregate demand curve is ...

[P68T]

In the Keynesian range, the:
 a. Aggregate demand curve is horizontal.
  b. Aggregate supply curve is horizontal.
  c. Aggregate demand curve is vertical.
  d. Aggregate supply is upward-sloping.
  e. Aggregate supply curve is vertical.

Question 2

When calculating the nominal interest rate with the precise formula, the interaction term:
 a. Is a measure of the difference between the nominal interest rate and the real interest rate.
  b. Is compensation for the decline in purchasing power of the real interest earned.
  c. Is never useful to calculate and can be dropped without any loss of information.
  d. Measures the degree of interaction between businesses and individuals.
  e. Measures the degree of interaction between expected inflation and consumption.

[sabina576]

Answer to Question 1

.B

Answer to Question 2

.B

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[sabina576]

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