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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

If bond prices fall, will individuals want to hold more or less money? Explain your answer.

To determine

Change in bond prices and holding money.

Explanation

When the bond prices fall, people tend to hold less money. The fall in the bond prices leads to an increase in the rate of interest...

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