The long-run real interest rate varies

Question

Answer

inversely with changes in non-interest-sensitive components of aggregate demand and inversely with potential output.

Answer

directly with changes in non-interest-sensitive components of aggregate demand and does not vary with potential output.

Answer

directly with changes in non-interest-sensitive components of aggregate demand and inversely with potential output.

Answer

directly with changes in non-interest-sensitive components of aggregate demand and directly with potential output.

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