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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 .

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