U.S. baby boomers are beginning to retire and withdraw their savings for retirement. What effect should we expect this to have on equilibrium price and quantity of financial assets?
A) Price rises and quantity also rises.
B) Price rises and quantity falls.
C) Price falls and quantity rises.
D) Price falls and quantity also falls.

Question

Quizplus · Accepted Answer

As baby boomers retire and withdraw their savings, they will likely sell financial assets, increasing supply. This increased supply can lead to a decrease in the equilibrium price and quantity of financial assets.

US Baby Boomers Are Beginning to Retire and Withdraw Their