Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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CAN YOU SOLVE THİS MACROECONOMY QUESTİON ASAP!!!

Transcribed Image Text:Which of the following portfolio allocation decisions represents the best individual response to a decrease in the interest rate on nonmonetary assets?
A. Sell some bonds and use the money to buy stocks.
B. Buy some nonmonetary assets with cash.
C. Sell some nonmonetary assets to get cash.
D. Sell some stocks and use the money to buy bonds.
If you perceive that the risk to stocks is likely to rise, your optimal portfolio decision might be to
A. Sell some bonds and use the money to buy stocks.
B. Buy some stocks with cash.
C. Sell some bonds to get cash.
D. Sell some stocks and use the money to buy bonds.
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