Everything Else Held Constant,an Increase in the Liquidity of Bonds

question 5

Multiple Choice

Everything else held constant,an increase in the liquidity of bonds results in a ________ in demand for bonds and the demand curve shifts to the ________.

• A)rise;right
• B)rise;left
• C)fall;right
• D)fall;left

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Definitions:

Total Variable Costs

The sum of all costs that vary directly with the level of output produced.

Earrings

Jewelry designed to be worn on the ears, available in various styles and materials.

Variable Input

An input whose quantity varies with production levels, affecting cost and output.

Marginal Cost

The added cost of producing one additional unit of a product or service.