view the media release by Phillip Lowe the Governor of the R

view the media release by Phillip Lowe, the Governor of the RBA and answer the questions below. tp:/www.rba.gov.au/media-releases/2017mr-17-09 html 1.3. In the new equilibrium, it is the new money demand and the new money supply that determines the nominal interest rate. O True OFalse

Solution

The statement is true

Nominal interest rate is the rate of interest before adjustment for inflation.

It is quoted on bonds and loans.

It doesn\'t take inflation in to account .