When the Money Supply and the Demand for Goods Increase

question 142

Multiple Choice

When the money supply and the demand for goods increase at the same time:

• A) producers understand how to react,but consumers are confused.
• B) consumers act rationally,but producers cannot read the market signals.
• C) the government is able to clarify how the markets will be affected.
• D) both consumers and producers can often become confused.

---

Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both interest payments and the principal appreciation or depreciation.

Par Value

The face value of a bond or stock, as stated by the issuing company. This is the nominal value and may differ from the market value.

Coupon Bond

A bond that pays the holder a fixed interest rate (coupon) over the bond's lifetime and repays the principal at maturity.

Current Yield

A measure of the annual income (interest or dividends) generated by an investment, expressed as a percentage of the current market price.