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 the supply of these assets in the market. This increased supply, with demand remaining constant or not increasing proportionately, will lead to a decrease in the equilibrium price and quantity of financial assets.

USBaby Boomers Are Beginning to Retire and Withdraw Their Savings