AuthorTopic: Another Econ Q
Shaan23
@2014-10-30 11:41:52		 An increase in real output will cause:
Answer:
an INCREASE in interest rates and fall in bond prices
Solution:
An increase in real output causes an increase in money demand, which causes a rise in interest rates.

But From the NOTES and how I've been reading it:
A rise in the interest rate brings a decrease in the quantity of money demanded. demanded.

Whats the source of confusion here?

CFA Discussion Topic: Another Econ Q

To post a new topic or reply to a topic, please log in or register for a free user account.

I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu