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Investment depends on the ______ interest rate, and money demand depends on the ______ interest rate. a. real; real b. nominal; nominal c. real; nominal d. nominal; real

Sagot :

The correct option is C.

What are investments?

Investment is a broad term used to refer to any asset or item(s) that are acquired with the sole aim of generating profit. These investments often take various forms such as

  • Shares investments
  • Property investments
  • Cash investments
  • Fixed interest investments.

Typically these investments depend on the real interest rate, and money demand depends on the nominal interest rate.

You can learn more about nominal and real interest rates here https://brainly.com/question/13324776

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