If Assets Are Imperfect Substitutes, Then a Decrease in the Amount

question 57

Multiple Choice

If assets are imperfect substitutes, then a decrease in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank.

• A) decrease; leave unchanged
• B) increase; decrease
• C) increase; increase
• D) decrease; decrease
• E) leave unchanged; decrease

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Definitions:

Qualified

Being qualified refers to having the necessary skills, qualifications, or experience required for a particular job or activity.

Vague

Lacking clearness or definiteness; difficult to understand or grasp due to being indistinct or unclear.

Discriminatory Sentence

A judgment or statement in a legal context that unfairly disadvantages an individual or group based on characteristics like race, gender, or age.

Effective Message

Communication that is clear, persuasive, and achieves its intended purpose or outcome with the target audience.