As bonds become a riskier asset, the demand for money ________ and, all else constant, the equilibrium interest rate ________
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
A
Economics
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If the cross-price elasticity of demand between two goods is positive, then
a. consumers are being irrational b. supply is elastic c. the goods may have similar uses d. the goods may go well together in consumption e. one good must be a necessity
Economics
Other things equal, the multiplier effect associated with a change in government spending is:
A. the same as that associated with a change in taxes. B. equal to that associated with a change in investment or consumption. C. less than that associated with a change in investment. D. greater than that associated with a change in investment.
Economics