An Increase in the Demand for Bonds

question 27

Multiple Choice

An increase in the demand for bonds

• A) raises the interest rate and increases equilibrium quantity of bonds.
• B) raises the interest rate and decreases equilibrium quantity of bonds.
• C) lowers the interest rate and decreases equilibrium quantity of bonds.
• D) lowers the interest rate and increases equilibrium quantity of bonds.

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Definitions:

Closed-ended Question

A type of question that typically can be answered with "yes" or "no" or within a limited set of options.

Hypothetical Question

A question based on assumptions rather than facts, often used to explore possibilities or legal implications in various scenarios.

Open-ended Question

A type of question that allows for a free-form response, encouraging detailed answers rather than a simple yes or no.

Closed-ended Question

A type of question formulated in a way that limits the answers to specific choices, such as yes or no, or a multiple-choice format.