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True, False or Uncertain. Briefly explain your answer.. 1. According to the Fisher equation, nominal interest rates always exceed inflation rates. 2. An increasing marginal
True, False or Uncertain. Briefly explain your answer..
1. According to the Fisher equation, nominal interest rates always exceed inflation rates.
2. An increasing marginal product of capital would reverse the Tobin effect. 3
3. In the model of random relocation, the existence of banks helps individuals achieve a better allocation. Compared with the allocation without banks, both movers and non-movers consume more.
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