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Which of the Following Statements Concerning the "Pure" Rate of Interest

Question 48

Multiple Choice

Which of the following statements concerning the "pure" rate of interest is true?


A) It represents the true opportunity cost of holding idle money
B) A rate of interest approximated by the yield to maturity on long-term U.S. government bonds
C) Rate of interest at which the government can borrow
D) Determined according to the classical theory of interest by the interplay of the supply of savings and the demand for investment capital
E) All of the above are true

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