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There is a recent issuanceof a significant number of treasury shares at a higher interest rate. How would this affect businesses: A. Individuals and businesses are encouraged to save, hence businesses will expect lower demand and lower prices. B. Individuals and businesses are encouraged to save, hence businesses will expect higher demand and lower prices. C. Individuals and businesses are encouraged to spend, hence businesses will expect lower demand and lower prices. D. Individuals and businesses are encouraged to spend, hence businesses will expect higher demand and higher prices.

There is a recent issuanceof a significant number of treasury shares at a higher interest rate. How would this affect businesses: A. Individuals and businesses are encouraged to save, hence businesses will expect lower demand and lower prices. B. Individuals and businesses are encouraged to save, hence businesses will expect higher demand and lower prices. C. Individuals and businesses are encouraged to spend, hence businesses will expect lower demand and lower prices. D. Individuals and businesses are encouraged to spend, hence businesses will expect higher demand and higher prices.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
Section: Chapter Questions
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There is a recent issuanceof a
significant number of treasury shares
at a higher interest rate. How would
this affect businesses:

A. Individuals and businesses are encouraged to save, hence businesses will expect lower demand and lower prices.
B. Individuals and businesses are encouraged to save, hence businesses will expect higher demand and lower prices.
C. Individuals and businesses are encouraged to spend, hence businesses will expect lower demand and lower prices.
D. Individuals and businesses are encouraged to spend, hence businesses will expect higher demand and higher prices.

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