An increase in nominal income will result in:
a. a decrease in money market equilibrium.
b. an excess demand for bonds.
c. an increase in bond prices.
d. an excess supply of money.
e. a higher interest rate.
e
You might also like to view...
What are the effects of two independent variables that are highly correlated? What can be done to remedy the problem?
What will be an ideal response?
On the eve of the American Revolution, most colonials produced agricultural goods. The war boosted profits for many farmers
Indicate whether the statement is true or false
A deadweight loss arises under perfect competition
a. True b. False Indicate whether the statement is true or false
A U.S. firm buys bonds issued by a technology center in India. This purchase is an example of U.S
a. foreign portfolio investment. By itself it is an increase in U.S. holdings of foreign bonds and increases U.S. net capital outflow. b. foreign portfolio investment. By itself it is an increase in U.S. holdings of foreign bonds and decreases U.S. net capital outflow. c. foreign direct investment. By itself it is an increase in U.S. holdings of foreign bonds and increases U.S. net capital outflow. d. foreign direct investment. By itself it is an increase in U.S. holdings of foreign bonds and decreases U.S. net capital outflow.