If Market Interest Rates Increase,the Prices of Existing Bonds Will

question 123

Multiple Choice

If market interest rates increase,the prices of existing bonds will

• A) decrease.
• B) not change.
• C) increase.
• D) decrease if Real GDP decreases and increase if Real GDP increases.

---

Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country.

Aggregate Quantity

The total amount or volume of a particular good or service produced or consumed in a given period.

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level in the economy and the total demand for goods and services at that price level.

Real Output

The total value of all goods and services produced by an economy, adjusted for inflation, representing the actual productivity.