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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
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 rate These questions aim to assess understanding of the components of the monetary base and the factors determining long-term real interest rates.
Transcribed Image Text:### 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 rate These questions aim to assess understanding of the components of the monetary base and the factors determining long-term real interest rates.
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