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Figure 11-4 -Refer to Figure 11-4.In Panel (B), Assume That the Price

Question 169

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Figure 11-4
Figure 11-4 -Refer to Figure 11-4.In Panel (b) , assume that the price of bonds rises from P<sub>1</sub> to P<sub>2</sub>.Now, in Panel (c) , the higher price of bonds will _______ the demand for and _______ the supply of dollars and cause the exchange rate to ______. A) reduce; increase; increase B) increase; increase; fall C) increase; reduce; increase D) reduce; increase; fall
-Refer to Figure 11-4.In Panel (b) , assume that the price of bonds rises from P1 to P2.Now, in Panel (c) , the higher price of bonds will _______ the demand for and _______ the supply of dollars and cause the exchange rate to ______.


A) reduce; increase; increase
B) increase; increase; fall
C) increase; reduce; increase
D) reduce; increase; fall

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