An increase in the demand for bonds
A) raises the interest rate and increases equilibrium quantity of bonds.
B) raises the interest rate and decreases equilibrium quantity of bonds.
C) lowers the interest rate and decreases equilibrium quantity of bonds.
D) lowers the interest rate and increases equilibrium quantity of bonds.
Ans: D) lowers the interest rate and increases equilibrium quantity of bonds.
Economics
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Why does a firm maximize its profits by hiring so that VMP = W?
What will be an ideal response?
Economics
The Fed's mistakes of the early 1930s were compounded by its decision to
A) raise reserve requirements in 1936-1937. B) lower reserve requirements in 1936-1937. C) raise the monetary base in 1936-1937. D) lower the monetary base in 1936-1937.
Economics