Which of the following falls when bond prices rise?

One bag of flour is sold for $1.50 to a bakery, which uses the flour to bake bread that is sold for $4.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00 . Taking these three transactions into account, what is the effect on GDP?

a. GDP increases by $1.50. b. GDP increases by $3.50. c. GDP increases by $6.00. d. GDP increases by $7.50.

The relationship between quantity supplied and the price of output is such that

A) an increase in quantity will automatically lead to a reduction in price. B) an increase in price will lead to an increase in quantity supplied. C) an increase in price will produce an inward shift in the supply curve. D) quantity will decrease as the number of firms increases.