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A Decrease in Confidence in Stocks and Bonds Will Lead

Question 57

Multiple Choice

A decrease in confidence in stocks and bonds will lead households to shift their portfolios.As far as the money market is concerned,this development raises money ______ and ______ the equilibrium interest rate.


A) demand; raises
B) demand; lowers
C) supply; raises
D) supply; lowers

Correct Answer:

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