Exhibit 27-1 -According to the Data in Exhibit 27-1

question 124

Multiple Choice

Exhibit 27-1
-According to the data in Exhibit 27-1,

• A)real interest rates are negatively related to inflation.
• B)real interest rates are negatively related to the gap between real and potential GDP.
• C)real interest rates and real GDP are positively correlated.
• D)the Fed does not follow a monetary policy rule.
• E)the nominal interest rate will rise less than inflation.

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