If Assets Are Imperfect Substitutes, Then a Decrease in the Amount

question 57

Multiple Choice

If assets are imperfect substitutes, then a decrease in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank.

• A) decrease; leave unchanged
• B) increase; decrease
• C) increase; increase
• D) decrease; decrease
• E) leave unchanged; decrease

---

Definitions:

Patents

Legal documents granting exclusive rights to inventors for the protection of their inventions.

Labor Management

Describes the process of coordinating and controlling the relationship between employers and workers, focusing on overseeing work conditions and employment terms.

Patent Law

The area of law that deals with the granting of patents for new inventions and the rights of the inventors.

Foreign Trading

The act of buying and selling of goods and services between countries, which is a fundamental aspect of global economies and influences political and economic relationships.