If the supply of bonds in the United States decreases, bond prices will rise. When bond prices rise interest rates will
A) fall, which will make U.S. financial assets more attractive to foreigners.
B) rise, which will make U.S. financial assets more attractive to foreigners.
C) fall, which will make U.S. financial assets less attractive to foreigners.
D) rise, which will make U.S. financial assets less attractive to foreigners.
Correct Answer:
Verified
Q50: Suppose the U.S. dollar price of the
Q51: An increase in the U.S. exchange rate
Q52: Use the following to answer questions .
Exhibit:
Q53: Higher interest rates in the United States
Q54: In the textbook model, wealth is held
Q56: Holding everything else unchanged, higher interest rates
Q57: A fall in the price of bonds
Q58: Which of the following would cause the
Q59: If the demand for U.S. dollars goes
Q60: If the U.S. exchange rate falls,
A) foreign
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