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In the Long Run, the Real Interest Rate Is 3

Question 15

Multiple Choice

In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent.The nominal interest rate is


A) 3 percent.
B) 4 percent.
C) 5 percent.
D) 10 percent.
E) 6 percent.

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