Author Question: In the above figure, if we begin at S2 and the Fed buys bonds A) the price of bonds falls, and ... (Read 229 times)

leo leo · **on:** Jun 29, 2018

In the above figure, if we begin at S2 and the Fed buys bonds

A) the price of bonds falls, and the interest rate rises.
B) the price of bonds falls, and so does the interest rate.
C) the price of bonds rises, and so does the interest rate.
D) the price of bonds rises, and the interest rate falls.

Question 2

Money as a medium of exchange I. Facilitates the exchange of goods II. Reduces the incentive to barter

A) I only
B) II only
C) Both I and II
D) Neither I nor II