An increase in the demand for bonds leads to
A) a decrease in the price of bonds, a decrease in the interest rate, and a decrease in aggregate demand.
B) an increase in the price of bonds, an increase in the interest rate, and an increase in aggregate demand.
C) an increase in the price of bonds, a decrease in the interest rate, and an increase in aggregate demand.
D) a decrease in the price of bonds, an increase in the interest rate, and an increase in aggregate demand.
Ans: C) an increase in the price of bonds, a decrease in the interest rate, and an increase in aggregate demand.
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Refer to Figure 2-5. If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?
A) 2 million tons of steel B) 16 million tons of paper C) zero D) 9 million tons of paper
If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much would government spending have to change to generate this increase in real GDP?
a. $140 million. b. $100 million. c. $200 million. d. $400 million.
Which of the following does not represent real GDP?
A) GDP in current dollars B) GDP in terms of goods C) GDP in base year dollars D) GDP in constant dollars