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Answer: Option B
The demand curves for bonds shifts to left
During a period of economic expansion, when expected profitability is high, more people invest on short term securities which is inversly proportional to the bond price. Hence movement to the left
during a period of economic expansion we expected profit ability is high During a period of...
Please help me answer all greatly appreciated. Thumbs up a rise in demand for loanable funds by a large country can result fall in interest rates Ono change in interest rates O an increase in the interest rate Onone of the answers are correct if wealth increases the loanable funds supply curve shifts to the right true false If you expect prices to continue to fall since they have been falling in the past three months, your are exhibiting adaptive...
20. In the bond market, the bond demanders are the and the bond suppliers are the A) lenders: borrowers B) lenders, advancers C) borrowers; lenders D) borrowers, advancers 21. The demand curve for bonds has the usual downward slope, indicating that at prices of the bond, everything else equal, the is higher. A) higher; demand B) higher, quantity demanded C) lower; demand D) lower; quantity demanded 22. Everything else held constant, if interest rates are expected to fall in the...
Suppose an economy experiences an expansion caused by a shift in aggregate demand to the right. This economy transition back to its long-run equilibrium as the expected price level o falls, shifting aggregate supply right. O falls, shifting aggregate demand right. o rises, shifting aggregate demand left. O rises, shifting aggregate supply left. O None of the options is correct.
Other things constant, when nominal wages fall, the and the equilibrium price level -__ (Assume household wealth does NOT change as a result of the decrease in wages.) Short Run Aggregate Supply curve shifts right, falls. Aggregate Demand curve shifts right; falls. Short Run Aggregate Supply curve shifts left: rises. Aggregate Demand curve shifts left: rises.
The Federal Reserve issues a report indicating that future inflation will increase from 3% to 4%. As a result... A) the demand for loanable funds shifts right. B) the supply curve for bonds shifts left. C) the equilibrium interest rate falls. D) the equilibrium price of bonds rises.
1. If people expect higher inflation in the near future, the expected return on bonds rises/falls), and the demand for money (increases/decreases), leading to the rate of interest increasing/decreasing). 2. For the following questions, fill in the blanks below with: rises/falls/right/left/increase/decrease a. When real income increases, the demand curve for money shifts to the the interest rate _, everything else held constant. and b. A business cycle expansion increases income, causing money demand to interest rates to , everything else...
1. All the following shift the demand curve for cardiology services to the right except: a. a new cardiologist opens an office in town. b. the local factory gives a big raise to its employees. c. the price of an exercise stress test (also called exercise electrocardiogram, treadmill test or stress EKG) falls. d. None of the Above. 2. Assume the market for retail clinics is competitive. What happens in the market for retail clinics when the price of emergency...
22. If the expected returns on commodities falls, while the expected returns on bonds do not change, then A) the demand curve for bonds will shift to the left. B) the supply curve for loanable funds will shift to the right. C) the equilibrium interest rate will fall. D) the equilibrium price will rise.
1. The numbers listed under each item below are the costs for producing Product A, Product B, and Products A and B together. Which set of costs exhibits economies of scope? a. 100, 150, 250 b. 100, 150, 260 c. None of these cost listings exhibit economies of scope d. 100, 150, 240 2. When MC rises above AC, then we know that a. AC declines b. AC remains the same c. AC is negative d. AC increases 3. The...
In the Challenge Solution, the introduction of GM seeds shifts the market supply curve to the right and the market demand curve to the left. In turn, we could predict the change in the equilibrium price of crops but not the equilibrium quantity. Are there any conditions on the shapes of the supply and demand curves (or their elasticities) such that we could predict the effect on equilibrium quantity. Assume the introduction of GM seeds shifts market supply to the...