If bonds and stocks are considered to be substitute goods, and the investors expect stock prices to drop in the near future, _____
a. the price of bonds will also decline
b. the supply of bonds will increase
c. the interest rate on bonds will decline
d. the demand for stocks will increase
e. the demand for bonds will decline
c
Economics
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If the price doubles and the quantity supplied also doubles, the price elasticity of supply for the good is
A) -1. B) 1. C) -2. D) 2. E) 100 percent.
Economics
In general, the larger the price elasticity:
a. the smaller the responsiveness of price to changes in quantity. b. the smaller the responsiveness of quantity to changes in price. c. the larger the responsiveness of price to changes in quantity. d. the larger the responsiveness of quantity to changes in price.
Economics