Other things remaining the same, if the price level rises, then domestic interes
ID: 1193333 • Letter: O
Question
Other things remaining the same, if the price level rises, then domestic interest rates will:
a. rise, so domestic residents will want to hold more foreign bonds.
b. rise, so domestic residents will want to hold fewer foreign bonds.
c. fall, so domestic residents will want to hold more foreign bonds.
d. fall, so domestic residents will want to hold fewer foreign bonds.
a. rise, so domestic residents will want to hold more foreign bonds.
b. rise, so domestic residents will want to hold fewer foreign bonds.
c. fall, so domestic residents will want to hold more foreign bonds.
d. fall, so domestic residents will want to hold fewer foreign bonds.
Explanation / Answer
b. rise, so domestic residents will want to hold fewer foreign bonds.
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