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:

Numeric Values

Quantitative data represented in number form, which can be used in calculations and statistical analyses.

Arithmetic Operations

Basic mathematical operations including addition, subtraction, multiplication, and division.

Quantitative

Pertaining to the measurement or quantity of something, often involving numbers and statistical analysis.

Variable

An attribute or characteristic that can vary among subjects in a study, often classified as dependent or independent.