Holding everything else constant, if interest rates are expected to increase, the demand for bonds ________ and the demand curve shifts ________
A) increases; right
B) decreases; right
C) increases; left
D) decreases; left
D
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Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 20 magazines per week, which of the following amount of pizza is not affordable to him?
A) 10 B) 20 C) 9 D) All of the above answers are correct because none of the listed amounts of pizza are affordable.
Economists normally assume that the goal of a firm is to (i) earn profits as large as possible, even if it means reducing output. (ii) earn revenues as large as possible, even if it means reducing profits. (iii) minimize costs, regardless of profits
a. (i) only b. (i) and (ii) only c. (ii) and (iii) only d. (i), (ii), and (iii)