If interest rates are falling, then, ceteris paribus,

A) bond holders are suffering capital losses.
B) bond prices are rising.
C) the liquidity demand for money will be falling.
D) income must be rising.

B

Economics

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When the aggregate supply curve intersects the aggregate demand curve at a level of real GDP that exceeds potential GDP, is there an inflationary gap or a deflationary gap? What adjustments will take place?

What will be an ideal response?

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According to the circular flow model, an increase in spending by businesses on productive resources would cause the income and spending of consumers to increase

Indicate whether the statement is true or false

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