Solved

If the Private Sector Wishes to Hold a Constant Quantity

Question 112

Multiple Choice

If the private sector wishes to hold a constant quantity of real government bonds,inflation requires that the private sector continuously ________ those bonds,so that the government ends up having to pay out interest on net equal to the ________ interest rate times the bonds outstanding.


A) sell,nominal
B) sell,real
C) buy,nominal
D) buy,real

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions