If people expect nominal interest rates to be lower in the future, the expected return to bonds ________, and the demand for money ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
B
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Mandy saved her allowance to buy a 12 pack of cream soda. When Mandy's brother saw the soda, he took four. Sodas were allocated between Mandy and her brother through
A) force. B) majority rule. C) first-come, first-served. D) sharing equally. E) personal characteristics.
The economic resource that organizes the use of other economic resources is called
A) labor. B) capital. C) entrepreneurship. D) land.
Using the above figure, suppose there is a decrease in the number of suppliers. Then
A) the equilibrium price will decrease below $25 per dozen roses. B) we cannot predict what will happen to equilibrium quantity. C) the equilibrium quantity will decrease below 10 dozen roses. D) both the equilibrium price and quantity will increase.
What's the opportunity cost of taking an unfair advantage in a deal?
A. Future deals may not occur or may come at a much higher cost. B. Building a reputation for being untrustworthy if the deal is likely to be repeated. C. Probably nothing, if the transaction is only taking place once. D. All of these statements are true.