\fQuestion 16 Which of the following is true for the real rate of interest? O The real rate of interest is the product of the nominal rate and expected inflation. O The real rate of interest can be negative. O The real rate of interest is the interest charged by banks on loans. The real rate of interest does not adjust for inflation. O The real rate of interest is equal to the nominal interest. Question 17 Assume that the required reserve ratio is 10 percent. If excess reserves are $5 million and the circulating currency is $25 million, the maximum possible value for M1 is $5.5 million $30 million O $75 million $250 million $255 million Question 18 Which of the following stands correct about the lags in fiscal and monetary policies? The time required to identify a problem is greater in the case of fiscal policy. More time is required to carry out a monetary policy decision. The time required to identify a problem is greater in the case of monetary policy. There is no lag time in carrying out a fiscal policy decision. The lags in both fiscal and monetary policies are of the same magnitude.Question 19 An increase in the market interest rate would cause the supply of loanable funds to and the demand for loanable funds to O increase, decrease decrease, increase increase, increase decrease, decrease O remain constant, increase Question 20 If the nominal interest rate increases, ceteris paribus, which of the following things will occur? The demand for money will decrease. The demand for money will increase. The quantity demanded for money will decrease. The supply of money will increase. O The supply of money will decrease