Everything else held constant, a decrease in wealth
A) increases the demand for stocks.
B) increases the demand for bonds.
C) reduces the demand for silver.
D) increases the demand for gold.
C
You might also like to view...
The selling of a good or service abroad at a price below production costs is
A) marginal cost selling. B) price discrimination. C) price differentiation. D) dumping.
Supporters of globalization argue that increased globalization will lead to:
a. increased living standards. b. decreased budget deficits. c. decreased trade deficits. d. currency appreciation. e. monetary stability.
If the Fed injects additional reserves into the banking system, why will banks generally want to expand their loans and investments?
a. Banks are legally required to expand loans when the Fed creates excess reserves. b. Maintaining reserves in excess of demand deposits is against the law. c. Banks fear the Fed will remove the excess reserves. d. Loans and investments generally earn more interest income for the banks than excess reserves.
Suppose a country has a real growth rate of 3%. Government spending is 75 billion units of currency and its tax revenues are 60 billion units of currency. The current national debt is 300 billion units of currency. At what inflation rate will its debt-to-income ratio remain unchanged?