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:

Fahrenheit Degrees

A temperature scale where the boiling point of water is 212 degrees and the freezing point is 32 degrees.

Correlation Coefficient

Represented by r, it is a number between −1 and 1, inclusive, that is used to judge how closely a line fits the data.

Median

The middle value in a data set when the values are arranged in ascending or descending order.

Discretionary Expense

Non-essential spending or expenses that an individual chooses to make, which can be cut without impacting their ability to cover basic living costs.