--%>
Assignment Help - homework help

Problem on money diagram

Help me to go through this problem. Refer to the given market for money diagrams. If the interest rate was at 8 percent, people would: A) sell bonds, which would cause bond prices to fall and the interest rate to fall. B) buy bonds, which would cause bond prices to rise and the interest rate to fall. C) have insufficient liquidity, which would cause them to reduce their spending on consumer goods. D) buy bonds, which would cause bond prices to fall and the interest rate to rise.

1582_6.png

   Related Questions in Microeconomics

  • Q : Classification of Surveys as

    Surveys can be classified as probabilistic sampling: • Simple random sampling: If you have a relatively small, self-contained, or clearly stated population, suc

    		•
  • Q : Rises price elasticity of demand for a

    The price elasticity of demand for a good will tend to rise as the: (i) number of obtainable substitutes increases. (ii) consumer income level increases. (iii) good is a less significant budget item. (iv) time permitted for response decreases. (v) ela

    		•
  • Q : High prices elasticities of demand

    Taxing private auto travel as well as subsidizing mass transit will most effectively limit auto travel and raise the use of mass transit when the price elasticities of demand for auto travel: (1) and mass transit are low, and the cross-elasticity of d

    		•
  • Q : Price elasticity of supply problem The

    The price elasticity of supply generally evaluates the ratio of relative: (i) Gain to the amounts firms supply at different prices. (ii) Price increase need to induce a firm to raise output. (iii) Change in the quantity supplied to a associative chang

    		•
  • Q : More elastic demand for labor The

    The demand for labor is more elastic the: (i) larger labor costs are like a proportion of total costs. (ii) shorter the time interval considered. (iii) greater the supply of labor. (iv) more difficult this is to substitute one resource for another. (v

    		•
  • Q : Effects of price ceiling Effects of

    Effects of price ceiling: The consequences of price ceiling might be: A) Scarcity of the commodity B) The government might oblige rationing that is, supply of goods in limited q

    		•
  • Q : Illustration of total revenue and

    The Square-Wheeled Locomotive, the last passenger train to Flatland, Iowa, wants more total revenue. When passengers’ demands for tickets are comparatively price elastic, in that case the railroad must: (1) raise the price, but lower this when d

    		•
  • Q : Arising Economic Discrimination

    Economic discrimination occurs while: (1) economic rents are received by resource suppliers. (2) wages are proportional to workers’ differing productive contributions. (3) household incomes differ because of different resource ownership. (4) pur

    		•
  • Q : Normal accounting profits I have a

    I have a problem in economics on Normal accounting profits. Please help me in the following question. The normal accounting profits are considered by the economists to be: (i) Exploitation of the consumer. (ii) Evidence of monopoly power. (iii) Economic costs of the p

    		•
  • Q : Problem of Nash Equilibrium Carlos and

    Carlos and Ivana are room-mates and friends. Carlos and Ivana eat together despite who cooks on a given night. Within this payoff matrix, Nash equilibrium could never be obtained in that: (w) neither Carlos nor Ivana cook, nor do they eat. (x) Carlos

    		•