Author Question: When the U.S. banking system collapsed during 1929-1933, the money supply declined dramatically. a. ... (Read 46 times)

dejastew · **on:** Jun 30, 2018

When the U.S. banking system collapsed during 1929-1933, the money supply declined dramatically.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Suppose the interest rate on a bond is 12.5 percent and that bond pays 90 a year in interest and sells for 720 . If the supply of bonds increases and the price of the bond falls to 600, the interest rate will ____ to ____.
a. increase; 15 percent
b. increase; 17.5 percent
c. decrease; 7.5 percent
d. decrease; 10 percent
e. increase; 13 percent