Which of the Following Is True

question 78

Multiple Choice

Which of the following is true?

• A)The money market model is essentially a model that determines the short-term nominal rate of interest.
• B)The money market model is essentially a model that determines the short-term real rate of interest.
• C)The loanable funds model is essentially a model that determines the short-term real rate of interest.
• D)The loanable funds model is essentially a model that determines the long-term nominal rate of interest.

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Definitions:

Rounded

Adjusted to the nearest specified value, often to simplify numbers for ease of calculation or reading.

Decimal Equivalent

A decimal number that represents the fractional part of a whole.

Percent Equivalent

A way to express fractions or decimals as percentages.

Rounded

The process of adjusting a numerical value to a specified degree of precision, often to the nearest whole number or decimal place.