Keynes argued that when interest rates were high relative to some normal value, people would expect bond prices to ________, so the quantity of money demanded would ________

A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase


B

Economics

You might also like to view...

If real GDP and the velocity of circulation do not change and the quantity of money grows by 3 percent, then in the long the inflation rate is

A) 0 percent. B) 3 percent. C) larger than 3 percent. D) -3 percent. E) More information is needed to answer the question.

Economics

All of the following are examples of fixed costs, except

a. Tax accountant fees b. Package designing fees c. Insurance d. Shipping costs

Economics

Which of the following observations is true?

a. Environmental damage can be reduced to zero. b. Pollution results from a price mechanism malfunction. c. Charging those who emit pollution is not a way of dealing with pollution problems. d. Public interest requires pollution be maintained at its free-market level.

Economics

Government outlays

What will be an ideal response?

Economics