The Equilibrium Real Interest Rate Is the Rate ________

question 24

Multiple Choice

The equilibrium real interest rate is the rate ________.

• A)at which the output gap is zero
• B)at which the inflation rate is low
• C)controlled by the central bank
• D)all of the above
• E)none of the above

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Definitions:

Chemoreceptors

Sensory cells or organs specialized in detecting changes in chemical concentrations, often used in taste, smell, and regulation of breathing.

Ventilation

The process of moving air in and out of the lungs to facilitate gas exchange with the internal environment, primarily involving oxygen and carbon dioxide.

Blood pH

The measure of acidity or alkalinity of the blood, which is typically maintained at around 7.35 to 7.45.

Hering-Breuer Reflex

Sensory impulses from stretch receptors in the lungs arrest inspiration; expiration then occurs.