6. Everything else held constant, a decrease in wealth A) increases the demand for stocks B) increases the demand for bonds C) reduces the demand for silver D) increases the demand for gold E) none of the above
6. Everything else held constant, a decrease in wealth A) increases the demand for stocks B) increases the demand for bonds C) reduces the demand for silver D) increases the demand for gold E) none of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Everything else held constant, a decrease in wealth
A) increases the demand for stocks
B) increases the demand for bonds
C) reduces the demand for silver
D) increases the demand for gold
E) none of the above.
An increase in the expected rate of inflation will
on bonds relative to that on
the expected return
assets, everything else held constant.
A) reduce; financial
B) reduce; real
C) raise; financial
D) raise; real
E) none of the above
8.
If fluctuations in interest rates become smaller, then, other things equal, the de-
mand for stocks.
and the demand for long-term bonds
A) increases; increases
B) increases; decreases
C) decreases; decreases i
D) decreases; increases
E) none of the above
6.
7.
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