Multiple Choice
In the two-period model of the economy,
A) borrowing rates of interest are greater than lending rates of interest.
B) borrowing rates of interest are less than lending rates of interest.
C) there is only one real interest rate.
D) borrowing rates of interest are equal to lending rates of interest.
E) there is only one nominal interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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