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    Macroeconomics Study Set 12
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    Exam 10: The Goals of Stabilization Policy: Low Inflation and Low Unemployment
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    The Real Rate of Interest
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The Real Rate of Interest

Question 113

Question 113

Multiple Choice

The real rate of interest


A) is equal to the nominal rate when Y equals YN.
B) is equal to the nominal rate minus the rate of inflation.
C) is equal to the nominal rate plus the rate of inflation.
D) is never negative.

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