An increase in nominal income will result in:
A)a decrease in money market equilibrium.
B)an excess demand for bonds.
C)an increase in bond prices.
D)an excess supply of money.
E)a higher interest rate.

Question

Quizplus · Accepted Answer

An increase in nominal income typically leads to higher demand for money for transactions, which can result in higher interest rates as people sell bonds to obtain money, leading to a decrease in bond prices.

An Increase in Nominal Income Will Result In