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The y axis on the loanable funds market diagram represents real interest rates, while the y axis on the money market diagram represents nominal interest
The "y" axis on the loanable funds market diagram represents real interest rates, while the "y" axis on the money market diagram represents nominal interest rates. Do you remember the difference? The nominal interest rate is
A) | unadjusted for the effects of inflation. |
B)
the interest rate quoted by banks or in financial markets.
C)
Both of the above are correct.
D)
None of the above are correct.
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