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Subject - Economics:

Macroeconomics

MCQ - 50-4060

Question:

A likely cause of falling Treasury bond prices might be

  1. expansionary monetary policy.
  2. contractionary monetary policy.
  3. a depreciating dollar.
  4. contractionary monetary policy.
  5. a decrease in the money demand.

Correct Answer: B

Explanation:

Falling bond prices correspond to rising interest rates, so look for the choice that increases interest rates. Lower money demand, one financial asset, creates rising demand for bonds, an alternative financial asset. Choice E therefore increases bond prices and lowers interest rates.

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Record Performance

269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: A likely cause of falling Treasury bond prices might be , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 50-4060.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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