If there is an excess demand for bonds at a given price of bonds, then
A) the interest rate will fall.
B) the interest rate will rise.
C) the price of bonds will fall.
D) the interest rate may rise or the interest rate may fall depending upon the reasons for the excess demand for bonds.
A
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If Project A has a cost of $2, and provides a benefit of $3, and Project B has a cost of $ 5 and provides a benefit of $8, which of the following statements is true?
A) The net benefit of Project A is $5. B) An individual can optimize by choosing Project B. C) Project A has a higher net benefit than Project B. D) A shift from Project A to Project B increases the net benefit by $1.
In analyzing international trade, we often focus on a country whose economy is small relative to the rest of the world. We do so
a. because it is impossible to analyze the gains and losses from international trade without making this assumption. b. because then we can assume that world prices of goods are unaffected by that country's participation in international trade. c. in order to rule out the possibility of tariffs or quotas. d. All of the above are correct.
Among economists today, the most widely accepted cause of the Great Depression is:
A. poor economic policymaking. B. globalization. C. wild stock market speculation on Wall Street. D. Adolf Hitler's election as Chancellor of Germany.
Fair insurance is a contract between an insurer and a policyholder in which
A) the value of the contract to the policyholder is negative. B) the value of the contract to the policyholder is zero. C) the risk of the contract to the policyholder is diversifiable. D) the value of the contract to the policyholder is positive.