hannahbrown29131 hannahbrown29131

01-02-2024
Business

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Assume that the economy is in equilibrium. If aggregate demand increases, nominal interest rates and bond prices will most likely change in which of the following ways?

a. Nominal Interest Rates - Increase; Bond Prices - Increase
b. Nominal Interest Rates - Increase; Bond Prices - Decrease
c. Nominal Interest Rates - Increase; Bond Prices - Not Change
d. Nominal Interest Rates - Decrease; Bond Prices - Increase
e. Nominal Interest Rates - Decrease; Bond Prices - Decrease

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