Which of the following statements about the result of a deterioration in business conditions that also causes a decrease in a nation's wealth is false?
A. The price of bonds will increase if bond supply decreases more than bond demand.
B. The impact on bond prices will be ambiguous since both the bond demand and supply curves shift left.
C. Interest rates will increase if bond demand decreases more than bond supply.
D. Neither bond demand nor bond supply will shift.
Answer: D
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We are given the individual demand curves for all of the people that consume Good Y. Which statement is TRUE about the market demand curve for Good Y?
A) The market demand curve is obtained by horizontally summing the individual demand curves. B) The market demand curve is obtained by vertically summing the individual demand curves. C) The market demand curve cannot be obtained because information on prices is missing. D) The market demand curve cannot be obtained from individual demand curves.
. During most of the 1990s and 2000s, the trend in interest rates was:
A. sharply downward. B. mildly downward. C. mildly upward. D. just about constant.
The unique situation in which the behavior of buyers and sellers is compatible is referred to as
A. Labor market balance. B. Full-employment GDP. C. Micro equilibrium. D. Macro equilibrium.
_________ is the added cost to produce one more unit of output.
A. Average cost B. Marginal product C. Marginal cost D. Marginal revenue