I need help with question 17 with explanation ### Economics Questions on Monetary Base and Real Interest Rate**16. The monetary base is composed of:**- a. Reserves- b. Coins and notes issued by the Fed- c. Currency and demand deposits- d. Currency, demand deposits, and money market mutual funds- e. Currency and reserves**17. In the long-run, the real interest is equal to:**- a. The nominal interest rate- b. The inflation rate- c. The marginal product of capital- d. The rate of growth of money supply- e. The unemployment rateThese questions aim to assess understanding of the components of the monetary base and the factors determining long-term real interest rates.

17. When the interest rate is adjusted for inflation, it is the real interest rate. Hence, we can…

6. The monetary base is composed of: Reserves a. b. C. Coins and notes issued by the Fed Currency and demand deposits 7. In the long-run, the real interest is equal to: The nominal interest rate a. b. C. The inflation rate The marginal product of capital d. e. d. Currency, demand deposits, and money market mutual funds e. Currency and reserves The rate of growth of money supply The unemployment rate

6. The monetary base is composed of: Reserves a. b. C. Coins and notes issued by the Fed Currency and demand deposits 7. In the long-run, the real interest is equal to: The nominal interest rate a. b. C. The inflation rate The marginal product of capital d. e. d. Currency, demand deposits, and money market mutual funds e. Currency and reserves The rate of growth of money supply The unemployment rate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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