In the above figure, if we begin at S1 and the Fed sells bonds

A) the price of bonds rises, and so does the interest rate.
B) the price of bonds falls, and the interest rate rises.
C) the price of bonds rises, and the interest rate falls.
D) the price of bonds falls, and so does the interest rate.


B

Economics

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The above table shows Tammy's total utility from videos and CDs. If Tammy has $70 to spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

A) 450. B) 1280. C) 1150. D) 1200.

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Give three reasons why a demand curve slopes downward to the right.

What will be an ideal response?

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If an increase of $5 billion in investment is associated with an increase of $25 billion in real Gross Domestic Product (GDP), the multiplier is

A) 1. B) 3. C) 5. D) 7.

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If one country has an absolute advantage in every commodity, there is no reason for it to trade

a. True b. False Indicate whether the statement is true or false

Economics