Examlex
Which of the following is a risk of investing in mortgages?
Velocity
The rate at which money circulates in an economy, calculated as the ratio of nominal GDP to the money supply.
Price Level
A measure of the average prices of goods and services in an economy at a specific point in time.
Quantity Equation
The equation M × V = P × Y, which relates the quantity of money, the velocity of money, and the dollar value of the economy’s output of goods and services.
Real Interest Rate
The rate of interest an investor expects to receive after allowing for inflation, reflecting the true cost of borrowing and the true return on lending.
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