Question: Comment on this statement: People care about real interest rates, not nominal rates. Therefore, money demand should depend on the difference between the real rates

Comment on this statement: “People care about real interest rates, not nominal rates. Therefore, money demand should depend on the difference between the real rates on money and bonds, not the nominal rate on bonds."

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The real interest rate on a bond is r The real return on money is n Money earns a negative re... View full answer

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