Suppose there is a increase in the wealth levels in the economy. Consequently, in the market...
Suppose there is a increase in the wealth levels in the economy. Consequently, in the market for bonds, we would expect that the _____ for bonds will _____ . supply; decrease supply; increase demand; increase demand; decrease
Homework Answers
When there is more wealth, investors will demand more assets to invest so they would demand more funds in bonds market. Hence the demand of bonds will increase and demand curve shifts left.
Select demand; increase
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Suppose there is a increase in the wealth levels in the economy.
Consequently, in the market...
A.) Suppose that investors in the bonds market find that risk levels decrease. Consequently, the demand...
A.) Suppose that investors in the bonds market find that risk levels decrease. Consequently, the demand for bonds should _____ and the demand curve will shift to the ____. A. decrease; right B. decrease; left C. increase; right D. increase; left B.) Suppose that government deficit spending rises. In this case, we would expected that the equilibrium price will ____ and the equilibrium yield will ____. A. rise; fall B. rise; rise C. fall; rise D. fall; fall
Suppose that wealth levels decrease and firms' profitable business opportunities increase in the economy. Then in...
Suppose that wealth levels decrease and firms' profitable business opportunities increase in the economy. Then in this market, the equilibrium price for bonds will fall will rise could go up or down, it's impossible to tell none of the above
The liquidity levels of bonds decreases and the profitable business opportunities in the economy decrease. In...
The liquidity levels of bonds decreases and the profitable business opportunities in the economy decrease. In the market for bonds, we expect that the demand curve should shift and the supply curve should shift left:left left:right right:left right:right
in the market for oranges suppose a left ward shift in supply causes an increase in...
in the market for oranges suppose a left ward shift in supply
causes an increase in the equilibrium price of oranges. the
movement from the original to the final equilowould entail
QUESTION9 In the market for oranges, suppose a leftward shift in supply causes an increase in the equilibrium price of oranges. The movement from the original to the final equilibrium would ental an increase in the demand for oranges as they become more scarce. As a result of the...
Suppose that the market for corn is perfectly competitive. If corn farmers are currently generating losses,...
Suppose that the market for corn is perfectly competitive. If corn farmers are currently generating losses, then we would expect that in the long run the market Multiple Choice supply curve will shift to the right. supply curve will shift to the left. demand curve will shift to the left. demand curve will shift to the right. A reduction in the demand for labor will cause Multiple Choice wages to decrease and employment to decrease. wages to decrease and employment...
19. Suppose that the incomes of buyers in a particular market for an inferior good decline....
19. Suppose that the incomes of buyers in a particular market for an inferior good decline. At the same time, there is an increase in input prices. What would we expect to occur in this market? A. Equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous. B. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. C. Equilibrium price would increase, but the impact on the amount sold...
Question 1 An increase in the price level will ________ the real value of wealth and,...
Question 1 An increase in the price level will ________ the real value of wealth and, as a result, there will be ________ the aggregate demand curve. have no effect on; no change in increase; a rightward shift of reduce; an upward movement along reduce; a leftward shift of increase; an upward movement along 2. A severe drought hits a country and reduces farm output by 50 percent. This will impact aggregate demand. short-run aggregate supply and aggregate demand. short-run...
A decline in U.S. wealth would tend to cause: a. long-run aggregate supply to increase. b....
A decline in U.S. wealth would tend to cause: a. long-run aggregate supply to increase. b. short-run aggregate supply to increase. c. aggregate demand to decrease. d. long-run aggregate supply to decrease. e. aggregate demand to increase.
Suppose a stock market boom makes people feel wealthier. The increase in wealth would cause people...
Suppose a stock market boom makes people feel wealthier. The increase in wealth would cause people to desire increased consumption, which shifts the aggregate demand curve right. increased consumption, which shifts the aggregate demand curve left. decreased consumption, which shifts the aggregate demand curve right. decreased consumption, which shifts the aggregate demand curve left.
Suppose that a fall in house prices decreases wealth substantially. (For simplicity, assume that the economy...
Suppose that a fall in house prices decreases wealth substantially. (For simplicity, assume that the economy begins in long-run equilibrium.) a. How will this change affect output in the short run? b. Suppose the Federal Reserve wants to prevent the impact you found in part (a). Should it increase the real interest rate, decrease it, or leave it unchanged (or is it not possible to tell)? c. How, if at all, should the Federal Reserve change the supply of money...
The liquidity levels of bonds decreases and the profitable business opportunities in the economy decrease. In the market for bonds, we expect that the demand curve should shift and the supply curve should shift left:left left:right right:left right:right
in the market for oranges suppose a left ward shift in supply
causes an increase in the equilibrium price of oranges. the
movement from the original to the final equilowould entail
QUESTION9 In the market for oranges, suppose a leftward shift in supply causes an increase in the equilibrium price of oranges. The movement from the original to the final equilibrium would ental an increase in the demand for oranges as they become more scarce. As a result of the...
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