e ney termS Definitions Terms The difference between the price an asset can be s

Question

e ney termS Definitions Terms The difference between the price an asset can be sold for and what one owes on the asset A mortgage loan on which the interest rate on the loan is changed periodically depending on various factors The process by which financial institutions aggregate debt in a pool and then issue securities backed by the pool A means of changing the composition of assets in such a way as to lower the overall amount of capital a financial institution holds for a given level of assets 9. 1 pt. According to Milton Friedman, the economy is in long-run equilibrium when: The actual inflation rate is zero The actual inflation rate is greater than the expected inflation rate by 1% . The actual inflation rate equals the expected inflation rate The expected inflation rate is zero

Explanation / Answer

According to Milton Friedman, the economy is in long run equilibrium when:

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