Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A) The long-run real interest rate varies directly with changes in non-interest sensitive components of aggregate demand and inversely with potential output.
• B) The long-run real interest rate varies inversely with changes in non-interest sensitive components of aggregate demand and inversely with potential output.
• C) The long-run real interest rate varies directly with changes in non-interest sensitive components of aggregate demand and directly with potential output.
• D) The long-run real interest rate varies directly with changes in non-interest sensitive components of aggregate demand and does not vary with potential output.

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Definitions:

Warranty of Merchantability

A guarantee implied by law that a product sold will meet certain quality and performance standards.

Vet Bills

Expenses incurred for medical treatment, surgeries, medications, and general healthcare provided by veterinarians to animals.

Merchantable

Refers to goods being fit for the purpose for which they are sold, meeting the buyer's reasonable expectations.

Variation

A change or difference in condition, amount, or level, typically with certain limits.