The Federal Reserve issues a report indicating that future inflation will be higher than had previously seemed likely. As a result
A) the supply curve for bonds shifts to the right.
B) the demand curve for loanable funds shifts to the left.
C) the equilibrium interest rate falls.
D) the equilibrium price of bonds rises.
A
You might also like to view...
A monopoly will look for opportunities to price discriminate because the practice
A. leads to greater profits. B. allows it to charge higher prices. C. leads to selling more units. D. is desired by customers.
If an incumbent threatens to retaliate against entry, but its profits are greater under accommodated entry than under the proposed threat, potential entrants will ignore the threat
What will be an ideal response?
A firm will continue hiring labor as long as the MRP of labor ________ the market wage rate.
A. is greater than or equal to B. determines C. is less than D. is equal to
When unanticipated inflation occurs:
What will be an ideal response?