Which of the Following Does NOT Necessarily Hold When the Economy

question 34

Multiple Choice

Which of the following does NOT necessarily hold when the economy is in long-run equilibrium?

• A)Saving equals investment.
• B)The nominal interest rate is equal to the real interest rate.
• C)The current output supplied is equal to the current output demanded.
• D)Households and businesses are willing to accept the mix of money and nonmoney assets they hold.

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