In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent. The nominal interest rate is

The process in which people seeking higher yielding securities take their funds out of the banking system thus restricting the amount of funds banks can lend is called

A) capital mobility. B) loophole mining. C) disintermediation. D) deposit jumping.

In the multiple regression model, the least squares estimator is derived by

A) minimizing the sum of squared prediction mistakes. B) setting the sum of squared errors equal to zero. C) minimizing the absolute difference of the residuals. D) forcing the smallest distance between the actual and fitted values.