Question

As the price level falls Select one: a. people will want to buy fewer bonds, so the interest rate falls. b. people will want to buy more bonds, so the interest rate rises. c. people will want to buy fewer bonds, so the interest rate rises. d. people will want to buy more bonds, so the interest rate falls

Answer 1

Answer:

d. people will want to buy more bonds, so the interest rate falls

Explanation:

In the case when the level of price is declines so the people wants to purchase more bonds as the rate of the interest declines due to the aggregate demand concept as it shows the relationship between the level of the price and the total spending amount that companies, government will capable to do at each and every level of the price