Suppose that people in France decide to permanently increase their savings rate. Predict what will happen to the French bond market in the future. Can France expect higher or lower domestic interest rates?
A. There will be an increase in wealth, creating a shift to the right in the demand curve for bonds in France. France can therefore expect permanent higher interest rates in the future.
B. There will be a decrease in wealth, creating a shift to the left in the demand curve for bonds in France. France can therefore expect permanent lower interest rates in the future.
C. There will be an increase in wealth, creating a shift to the right in the demand curve for bonds in France. France can therefore expect permanent lower interest rates in the future.
D. There will be a decrease in wealth, creating a shift to the left in the demand curve for bonds in France. France can therefore expect permanent higher interest rates in the future.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that people in France decide to permanently increase their savings rate. Predict what will happen to the French bond market in the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Consumer Compensation. Suppose your college grants Coca-Cola a monopoly in selling soft drinks on campus. Your job is to compute how much each student should be paid to compensate for his or her consumer cost of the monopoly.
Answers (1)
Identify the statement that is incorrect. a. Higher financial leverage involves higher risk. b. Risk is higher if a company has more liabilities. c. Risk is higher if a company has more assets. d. The debt ratio is one measure of financial risk. e.
Answers (1)
What role do entrepreneurs play in economics? Entrepreneurs tell consumers what they should want or need. Entrepreneurs create the businesses that produce products and services that meet the wants and needs of consumers.
Answers (1)
As of December 31, 2019, Sheridan Company had $3500 of raw materials inventory. At the beginning of 2019, there was $3000 of materials on hand. During the year, the company purchased $315000 of materials; however, it paid for only $252500.
Answers (1)
The following information is available for Chap Company. Sales: 350,000Cost of goods sold: 120,000Total fixed expenses: 60,000Total variable expenses: 100,000Which amount would you find on Chap's CVP income statement? A.
Answers (1)
New Questions in Business
If the price and quantity for an inferior good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant?
Answers (1)
Assume the top six firms comprising an industry have market shares of 10, 8, 8, 5, 5, and 4 percent. The remaining 20 firms each have market shares of 2 percent. The Herfindahl index for this industry is
Answers (1)
Andre, the floor manager of a packing plant, is under pressure from his boss to increase productivity. He circulates a memo telling all of his workers that they need to increase the number of units packed each hour.
Answers (1)
What are the two main purposes that companies use social media?
Answers (1)
Which account will give you least access to your money?
Answers (1)