An increase in the demand for bonds
A) raises the interest rate and increases equilibrium quantity of bonds.
B) raises the interest rate and decreases equilibrium quantity of bonds.
C) lowers the interest rate and decreases equilibrium quantity of bonds.
D) lowers the interest rate and increases equilibrium quantity of bonds.
Ans: D) lowers the interest rate and increases equilibrium quantity of bonds.
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In the national income accounts, the purchase of a new house counts as
A) consumption expenditure. B) investment. C) a transfer. D) an addition to inventory.
Why can a monopoly earn economic profits in the long run?
The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be decreased by a constant rate year after year
a. True b. False Indicate whether the statement is true or false
Production is the process by which
A. resources are allocated and distributed. B. products are used by consumers. C. resources are transformed into useful forms. D. products are converted into capital.