Suppose that the equilibrium interest rate is 8 percent, but the actual interest rate is 5 percent. Very quickly,
a. bond prices fall
b. bond prices will rise
c. the interest rate will begin to fluctuate until bondholders reduce their demand for money
d. the primary bond market will start its adjustment process
e. the supply and demand for money will both increase
A
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According to your textbook authors, what explains the dramatic decline in the U.S. poverty rate since the 1960s?
A) The power of labor unions B) Steady economic growth C) Increases in the minimum wage D) The growth of in-kind government transfers E) The growth of government welfare assistance paid in money
"A market is said to be perfectly competitive when consumers can tell that some products are of better quality than others." Do you agree or disagree? Why?
What will be an ideal response?
Each of the following would be an example of technological change, EXCEPT
A. increases in output due to increases in capital. B. improvements in the qualities of resources. C. improved knowledge about how to combine resources. D. the introduction of totally new production processes.
The Federal Open Market Committee has _____ members.
A. 7 B. 10 C. 12 D. 14