ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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.
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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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