If wealth increases,the demand for stocks ________ and that of long-term bonds ________,everything else held constant.
A)increases;increases
B)increases;decreases
C)decreases;decreases
D)decreases;increases

Question

Quizplus · Accepted Answer

When wealth increases, people have more money to invest, leading to an increase in the demand for both stocks and long-term bonds, assuming all other factors remain constant.

If Wealth Increases,the Demand for Stocks ________ and That of Long-Term