Suppose Norway Decides to Sell Its Large Holdings of Canada

question 223

Multiple Choice

Suppose Norway decides to sell its large holdings of Canada bonds.If you are thinking of financing your new car, how would Norway's action affect your decision to refinance?

• A)You would want to finance as soon as possible as interest rates should rise.
• B)You would want to wait to finance as interest rates should rise.
• C)You would want to wait to finance as interest rates should fall.
• D)You would want to wait to finance as it will likely be easier to qualify for a loan.
• E)Norway's actions should not affect your decision to refinance in any way.

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Definitions:

Public Good

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

Lighthouse

A tall structure with a powerful light at the top, located near or on the shore, providing navigation guidance to maritime pilots at sea or on inland waterways.

Willingness To Pay

The maximum amount that a buyer will pay for a good.

Public Park

An area of natural, semi-natural or planted space set aside for human enjoyment and recreation or for the protection of wildlife or natural habitats.