The interest rate is the opportunity cost of holding bonds.
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Q106: When money demand increases, bond prices
A) fall
Q107: When there is an excess demand for
Q108: When the money supply increases, bond prices
A)
Q109: Interests rates
A) are usually higher on short-term
Q110: Bonds
A) are the most important type of
Q112: Interests rates
A) are usually higher on short-term
Q113: Paola pays $10,000 for a one-year bond
Q114: When the fraction of deposits banks hold
Q115: When money demand decreases, bond prices
A) rise
Q116: Compared to money, bonds are
A) less liquid
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