Provide one argument in favour and one argument against the following statement: “Ideally, it would be optimal to set the nominal interest rate to zero at all times.”

Consider the market for loanable funds. Suppose the demand for loans is given be i=9-Q+π, and the supply of loans is given by i=Q/2+π, where π represents inflation. Now suppose that π=5 (instead of 3, in the previous problem). What is the equilbrium quantity of loans and what is the corresponsing interest rate?      Q*=8, i*=6     Q*=3, i*=6     Q*=6, i*=8     Q*=6, i*=6

Consider the market for loanable funds. Suppose the demand for loans is given by i= 100-3Q+T, and the supply of loans is given by i= -20+Q+π, where π represents inflation. In the case of T-5, what is the real interest rate? O r=10 O r=2 O r=-2 O r= -10

Define the tern Market Interest Rates?