Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent. In this case, the real after-tax interest rate is

The quantity of money demanded is positively related to the interest rate

Indicate whether the statement is true or false

In the expenditures approach of national income accounting, C, I g , and G include expenditures for:

A.  Domestically produced goods and services only B.  Domestically produced as well as imported goods and services C.  Exported goods and services D.  The private sector of the economy only