In the above figure, if the interest rate is 8 percent
A) people sell bonds so as to convert them into money.
B) people buy bonds and the interest rate falls.
C) the Fed increases the quantity of money.
D) people buy stocks, because stocks are more liquid than currency.
B
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Firms have a competitive advantage when
a. They can deliver the same product benefits as their competitors but at a lower cost b. They can deliver superior product at a similar cost c. Both of the above d. None of the above
Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending. Such changes would make it more likely that
A) consumers would pay prices closer to the actual costs for routine medical care. B) employers would provide more generous medical coverage to their employees. C) insurance deductibles would decrease. D) the quantity of medical services demanded would increase.