Recall the Application about the possible link between the value of the U.S. dollar and the worldwide increase in commodity prices to answer the following question(s). Starting in the summer of 2010, there was a rise in prices of commodities such as oil and food worldwide. Some economists suggested that monetary policy in the United States was the cause of the worldwide commodity boom.
-Recall the Application. The rise in commodity prices corresponded with ________ in interest rates, and this change in interest rates would result in bond prices ________.
A) an increase; falling
B) an increase; rising
C) a decrease; falling
D) a decrease; rising

Question

Quizplus · Accepted Answer

When interest rates decrease, bond prices rise due to the inverse relationship between bond prices and interest rates.

Recall the Application About the Possible Link Between the Value