Question: a. Is it the long-term nominal interest rate or the long-term real interest rate that influences spending decisions? Explain why. b. How does the market

a. Is it the long-term nominal interest rate or the long-term real interest rate that influences spending decisions? Explain why.
b. How does the market determine the long-term nominal interest rate and why doesn’t it move as much as the short-term interest rates?

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a It is the real longterm interest rate that influences spending decisions The real interest rate st... View full answer

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