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 |
Homework Answers
When the wealth decreases,the demand for bonds decreases and also the favourable business opportunities will increase the supply of bonds which will cause the equilibrium price to fall.
option(A)
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Suppose that wealth levels decrease and firms' profitable
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The liquidity levels of bonds decreases and the profitable business opportunities in the economy decrease. In...
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Suppose there is a increase in the wealth levels in the economy. Consequently, in the market...
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Suppose that in the bond market, there is an increase in the expected return on bonds...
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Please help with these questions, Question 5 0.16 pts When firms in a market expect the...
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Suppose that a fall in house prices decreases wealth substantially. (For simplicity, assume that the economy...
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