The Interest Rate Falls When Either the Demand for Bonds

question 20

Multiple Choice

The interest rate falls when either the demand for bonds ________ or the supply of bonds ________.

• A)increases;increases
• B)increases;decreases
• C)decreases;decreases
• D)decreases;increases

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Definitions:

Import Quotas

Restrictions set by a government on the quantity of a specific good that can be imported into a country.

Net Exports

The value of a country's total exports minus the value of its total imports, which is a component of a country's GDP.

Import Restrictions

Measures imposed by a government to control the quantity of goods coming into a country, often to protect domestic industries.

Trade Deficit

An excess of imports over exports.