If prices in the bond market become more volatile, everything else held constant, the demand curve for bonds shifts ________ and interest rates ________
A) left; rise
B) left; fall
C) right; rise
D) right; fall
A
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Joan's income has just risen from $940 per week to $1,060 per week. As a result, she decides to purchase 12 percent more lettuce per week. The income elasticity of Joan's demand for lettuce is
A) 0.75. B) 0.90. C) 1.00. D) 1.33.
Pamela Michelle Scott, a low income single mom, had just finished her monthly shopping to purchase 30 days' worth of meat from Hollins Market
She's reared five healthy children and said that she made good use of the free health clinics and food stamps. Pamela benefits from free health clinics which are ________ and food stamps which is a ________. A) Social Security programs; subsidized service B) unemployment compensation programs; Social Security program C) subsidized services; welfare program D) welfare programs; unemployment compensation program
A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________
A) rise; fall B) rise; rise C) fall; rise D) fall; fall
An unexpected decrease in aggregate demand results in an increase in real interest rates in the short run
a. True b. False Indicate whether the statement is true or false