If the Prices of Bonds Go Up, the Interest Rates

question 87

True/False

If the prices of bonds go up, the interest rates will fall and the quantity of investment demanded will rise.

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Definitions:

Federal Revenues

The income received by the federal government from taxes, fees, and other sources used to fund government operations and programs.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Import Quota

A government-imposed limit on the quantity or monetary value of a certain good that can be imported into the country.

World Price

The international market price of a good or service, determined through the global supply and demand.