A Decrease in the Nation's Wealth, All Other Factors Constant

question 54

Multiple Choice

A decrease in the nation's wealth, all other factors constant, would cause:

• A) the bond demand curve to shift left.
• B) bond prices to rise.
• C) interest rates to decrease.
• D) the bond supply curve to shift left.

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Definitions:

Agents

Individuals or entities authorized to act on behalf of another, known as the principal, in commercial transactions or legal matters.

Employees

Individuals who are hired by an employer to perform specific tasks or services in exchange for compensation.

Ratification

The act of formally approving an agreement or treaty, making it officially valid.

Principal

The party that an agent’s authority can bind or act on behalf of.