If bond prices decrease, then the:
A. Interest rate decreases
B. Interest rate increases
C. Transactions demand for money will decrease
D. Transactions demand for money will increase
B. Interest rate increases
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The above table shows data on two variables. If these data were graphed, the slope of the line would be
A) 3/5. B) 3. C) 5/3. D) impossible to determine from the information given.
Which type of unemployment increases during a recession?
A) cyclical unemployment B) frictional unemployment C) structural unemployment D) the natural unemployment rate
Over what range of prices does a shortage arise? What happens to the price when there is a shortage?
What will be an ideal response?
The demand deposit multiplier __________ as the required reserve ratio __________
A) increases; increases B) increases; decreases C) does not change; increases D) does not change; decreases