When the expected inflation rate increases, the demand for bonds ________, the supply of bonds ________, and the interest rate ________, everything else held constant
A) increases; increases; rises
B) decreases; decreases; falls
C) increases; decreases; falls
D) decreases; increases; rises
D
You might also like to view...
Why does an indifference curve slope downward and why is it bowed toward the origin?
What will be an ideal response?
Assume that goods X and Y are substitutes and are produced in perfectly competitive markets. All else constant, in the short run, a decrease in the supply of good X would cause:
A) an increase in the demand for good Y. B) a decrease in the demand for good Y. C) an increase in the supply of good Y. D) a decrease in supply of good Y.
Other things the same, in the Solow model in the steady state, a higher rate of population growth ________ growth rate of output
A) leads to a higher B) leads to a lower C) has no long-run effect on the D) has an ambiguous effect on the
Demand is a schedule that shows
A. how much income it takes to afford various quantities of a good. B. a set of possible prices for a good and the quantities of the good that will be purchased at each of those prices. C. the relationship between the cost of producing a good and the price that sellers will charge. D. how population changes will affect the amount of a good that is needed.