Everything else held constant, when stock prices become less volatile, the demand curve for bonds shifts to the ________ and the interest rate ________
A) right; rises
B) right; falls
C) left; falls
D) left; rises
D
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Inflation:
a. Always affects productivity. b. Is likely to affect productivity when the inflation rate is high and volatile. c. Does not affect productivity. d. Creates incentives to work more.
The irregular and largely unpredictable fluctuations in economic activity are called
a. market failure. b. business cycle. c. inflation. d. unemployment.
A firm whose price is matched by other firms in the market as a form of tacit collusion is called:
a. a profit maximizing firm. b. a price taking firm. c. an output leader. d. a price leader.
Samuelson and Solow argued that when unemployment is high, there is
a. upward pressure on wages and prices. b. upward pressure on wages and downward pressure on prices. c. upward pressure on prices and downward pressure on wages. d. downward pressure on wages and prices.