When Determining Interest Rates,the Loanable Funds Model Is More Useful

question 65

Multiple Choice

When determining interest rates,the loanable funds model is more useful when we are concerned with the determinants of the ________,and the money market model is more useful when we are concerned with the determinants of the ________.

• A) long-term real interest rate; short-term nominal interest rate
• B) short-term real interest rate; long-term nominal interest rate
• C) short-term real interest rate; short-term nominal interest rate
• D) long-term real interest rate; long-term nominal interest rate

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Definitions:

Estrogen

A group of hormones that play a key role in the development and regulation of female reproductive and secondary sexual characteristics.

Pelvic Cavity

A body cavity that is bounded by the bones of the pelvis and which primarily contains reproductive organs, the urinary bladder, and the pelvic colon.

Pancreas

A gland situated behind the stomach that has both exocrine functions (digestive enzyme production) and endocrine functions (insulin and glucagon production).

Erythropoietin

A hormone produced primarily by the kidneys that regulates red blood cell production in response to oxygen levels in the body.