All else held constant if aggregate wealth increases the bond_ curve should shift and interest rates should

All else held constant if aggregate wealth increases the bond_____ curve should shift and interest rates should ____

Expert Solution

Increase in wealth will lead to increase in demand for both stock and long term bonds

Stocks refer risky investements while long -term bonds refer risk-free investments

Increase in wealth will lead to increase in demand for both risky and risk-free investments.

jeff jeffy answered 2 years ago

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Question

All else held constant if aggregate wealth increases the bond_ curve should shift and interest rates should

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Expert Solution

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