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FIGURE 27-3 Refer to Figure 27-3

question 85

Multiple Choice

  FIGURE 27-3 Refer to Figure 27-3.Part (i) of the figure shows the money market and the effect of an increase in the supply of money.The corresponding sequence of events in the bond market is as follows: The ________ of money at i<sub>0</sub> leads firms and households to ________ bonds,which leads to a(n) ________ in the price of bonds and a decrease in the interest rate. A) excess demand; buy; increase B) excess demand; sell; decrease C) excess supply; buy; decrease D) excess supply; sell; decrease E) excess supply; buy; increase FIGURE 27-3 Refer to Figure 27-3.Part (i) of the figure shows the money market and the effect of an increase in the supply of money.The corresponding sequence of events in the bond market is as follows: The ________ of money at i0 leads firms and households to ________ bonds,which leads to a(n) ________ in the price of bonds and a decrease in the interest rate.

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Definitions:

Motivated

The condition of being eager or willing to act or work toward a goal due to personal desire or external incentive.

Self-Disciplined

The ability to control one's feelings, impulses, and actions in order to achieve long-term goals or adhere to a particular set of standards.

Excuses

Reasons or explanations provided to justify actions or decisions, often used to mitigate blame or responsibility.

Psychological Hardiness

The personal trait of resilience and strength in facing stress and adversity.

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