If the Federal Reserve increases the supply of money in the market, then bond prices will _____ and interest rates will _____.
a) fall; rise
b) rise; fall
c) rise; rise
d) fall; fall
Ans: b) rise; fall
Economics
You might also like to view...
When is an individual said to have single-peaked policy preferences?
What will be an ideal response?
Economics
The largest category of capital-market instrument is
A) corporate stock. B) large-denomination negotiable certificates of deposit. C) U.S. government securities. D) commercial and consumer loans.
Economics