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:

Self-fulfilling

A prediction or expectation that causes itself to become true by the very terms set forth or by the behaviors it induces.

Evolutionary Theory

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Penetration Pricing

A strategy where a new product is introduced to the market at a low initial price to attract customers quickly and gain market share.