If the Private Sector Wishes to Hold a Constant Quantity

question 112

Multiple Choice

If the private sector wishes to hold a constant quantity of real government bonds,inflation requires that the private sector continuously ________ those bonds,so that the government ends up having to pay out interest on net equal to the ________ interest rate times the bonds outstanding.

• A)sell,nominal
• B)sell,real
• C)buy,nominal
• D)buy,real

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Definitions:

Small Businesses

Enterprises that are independently owned and operated, characterized by a small number of employees and relatively low volume of sales.

Success Rate

The proportion or percentage of attempts that result in success, often used as a metric to gauge the effectiveness of a particular strategy or process.

Entrepreneurial Firms

Businesses characterized by innovative practices, growth orientation, and the pursuit of opportunities beyond current resources.

Birth Stage

The initial phase in the life cycle of a business or product, characterized by development and early growth.