Multiple Choice
In the long run the real interest rate is determined by ________, and in the short-run the Federal Reserve can control the real interest rate by setting the nominal interest rate if inflation adjusts ________.
A) saving and investment; slowly
B) saving and investment; quickly
C) the Federal Reserve; to equal the increase in the money supply
D) the Federal Reserve; slowly
Correct Answer:
Verified
Correct Answer:
Verified
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