The real interest rate on a loan
a. is the amount that the consumer agrees to pay
b. is always the same as the nominal rate
c. is always greater than the nominal rate
d. is only of concern when serious inflation occurs
e. is the percentage increase in the lender's purchasing power that results from making the loan
E
Economics
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Discuss how the Fed selling securities in the open market ripples through the different sectors of the economy
What will be an ideal response?
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In our modern financial system, money is created
A) only by central banks. B) only by the banking system. C) by central banks and the banking system. D) only by federal governments.
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