An increase in the supply of bonds leads to
A) an increase in the price of bonds, a decrease in the interest rate, and an increase in aggregate demand.
B) an increase in the price of bonds, an increase in the interest rate, and an increase in aggregate demand.
C) a decrease in the price of bonds, an increase in the interest rate, and an increase in aggregate demand.
D) a decrease in the price of bonds, an increase in the interest rate, and a decrease in aggregate demand.
Ans: D) a decrease in the price of bonds, an increase in the interest rate, and a decrease in aggregate demand.
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In the above figure, the short-run equilibrium is at the price level of ________ and real GDP of ________
A) 100; $15.5 trillion B) 120; $16 trillion C) 110; $15.5 trillion D) 100; $16 trillion