The market for bonds is initially described by the supply of bonds - S0, and the demand for bonds - D0, with the equilibrium price and quantity being P0 and Q0. An increase in the nation's wealth, all else constant, would cause the
A. Bond supply curve to shift to S1.
B. Bond supply curve to shift to S2.
C. Bond demand curve to shift to D1.
D. Bond demand curve to shift to D2.
Answer: C
Economics
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A) real interest rate. B) inflation rate. C) nominal interest rate. D) terms of trade. E) rate of economic growth.
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If wage rates fall at the same time that labor productivity increases, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS falls. B) SRAS remains constant. C) SRAS rises. D) SRAS may rise, fall, or remain constant.
Economics