Question
2) Suppose equity and real estate values increase so that families with investments in stocks or homes are wealthier. What happens to the market demand
2)
Suppose equity and real estate values increase so that families with investments in stocks or homes are wealthier. What happens to the market demand for assets?
A. | Demand for assets does not change | |
B. | Demand for assets shift leftward | |
C. | Demand for assets shifts rightward |
3)
Suppose you own shares in a stock index fund that tracks the value of the S&P 500. The firm that offers the fund recently imposed restrictions on the number of shares that may be redeemed for cash on a given day. How does this change in the funds operation affect the demand for this asset?
A. | Demand shifts leftward | |
B. | Demand shifts rightward | |
C. | Demand does not change |
4)
Suppose you received a US savings bond as a gift, and the bond pays $100 at maturity, which is ten years from now. What happens to the present value of this bond payment if the interest rate increases?
A. | Present value is not affected | |
B. | Present value declines | |
C. | Present value increases |
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