If the Interest Rate Was at 3 Percent,people Would

question 22

Multiple Choice

If the interest rate was at 3 percent,people would:

• A)sell bonds, which would cause bond prices to fall and the interest rate to rise
• B)buy bonds, which would cause bond prices to fall and the interest rate to rise
• C)sell bonds, which would cause bond prices to rise and the interest rate to rise
• D)buy bonds, which would cause bond prices to rise but have an uncertain effect upon the interest rate
• E)sell bonds, which would cause bond prices to fall and the interest rate to fall

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Definitions:

Faith

Strong belief or trust in something or someone, often without empirical evidence.

Conviction

A strongly held belief or opinion.

Ideological Reasoning

Forming conclusions based strictly on a predefined set of doctrines or political beliefs.

Constrains

Limits or restricts someone's actions or behavior.