Examlex
Which of the following would cause prices to fall and output to rise in the short run?
Market Rate
The prevailing interest rate available in the marketplace for instruments of similar risk and maturity, also known as the "market interest rate."
Bonds
Financial instruments representing a loan made by an investor to a borrower, often corporate or governmental, that pays periodic interest and the principal at maturity.
Face Value
The amount the corporation must repay to the bondholder at the maturity date.
Interest
The cost of using money for a period of time.
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