The demand for bonds curve slopes downwards because
A) at higher prices, bonds pay higher interest which makes them more attractive to buyers.
B) lower prices reduce the cost of borrowing which makes them less attractive to buyers.
C) at lower prices, bonds pay higher interest which makes them more attractive to buyers.
D) higher prices raise the cost of borrowing which makes them less attractive to buyers.
Ans: C) at lower prices, bonds pay higher interest which makes them more attractive to buyers.
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Which of the following statements is true?
A) It is easier to defend an overvalued currency than an undervalued currency since it is possible to print domestic currency and not foreign currency. B) It is easier to defend an undervalued currency than an overvalued currency since it is illegal to print domestic currency. C) It is easier to defend an undervalued currency than an overvalued currency since it is possible to print domestic currency. D) It is easier to defend an overvalued currency than an undervalued currency since it is possible to hold large reserves of foreign currencies.
How were exchange rates determined under the gold standard? How did the Bretton Woods system differ from the gold standard?
What will be an ideal response?