Macroeconomics 11th Edition by Stephen Slavin

تمرين 29

Circle the letter that corresponds to the best answer. If the equilibrium rate of interest is 7 percent and market price of a U.S. government bond is $1,000, what is the most likely interest rate and bond price if the Fed increases the money supply by a substantial amount?
A) 8 percent; $1,100
B) 8 percent; $1,000
C) 8 percent; $900
D) 6 percent; $1,100
E) 6 percent; $1,000
F) 6 percent; $900