As the price level rises

A. people will want to buy fewer bonds, so the interest rate falls.
B. people will want to buy fewer bonds, so the interest rate rises.
C. people will want to buy more bonds, so the interest rate falls.
D. people will want to buy more bonds, so the interest rate rises.


Answer: B. people will want to buy fewer bonds, so the interest rate rises.

Economics

You might also like to view...

The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?

A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d

Economics

As Shana's consumption of tacos decreases, her

A) marginal utility from tacos increases. B) marginal utility from tacos decreases. C) total utility from tacos increases. D) both total and marginal utility from tacos decrease.

Economics

If marginal revenue on the tenth unit of output equals $4 for a non-discriminating, profit-maximizing monopolist, then price: a. equals $4

b. is less than $4. c. is greater than $4. d. must be equal to average total cost.

Economics

Suppose the real exchange rate of 10 Mexican pesos to the dollar changes to 9 pesos to the dollar. In this situation, the dollar has __________________, making American goods __________ expensive for Mexicans

A) appreciated; less B) appreciated; more C) depreciated; less D) depreciated; more

Economics